(Yicai Global) Jan. 15 -- Chinese chemical maker Nata Opto-Electronic Material will build a USD148 million factory to produce photoresist, a key material used in semiconductors and high-end circuits, in Ningbo in China's eastern Zhejiang province, the firm said in a press briefing on Friday.

The Suzhou-based firm will look to tap the high levels of demand for the material in China, where market size could double to USD1.8 billion by 2021.

Nata will receive support from the local Ningbo municipal government including financial grants, land procurement, as well as preferential tax and human resources policies.

The company has also established a research and development team made up of technical professionals to facilitate the project's development.