(Yicai Global) Oct. 31 -- Shares of China Resources Microelectronics edged up after the semiconductor manufacturer said it intends to join hands with local government to build a CNY22 billion (USD3 billion) plant in Shenzhen.

CR Micro's Star Market-listed shares [SHA: 688396] closed up 3 percent at CNY50.66 (USD7) after climbing as much as 4 percent intraday. CR Micro is a listed arm of China Resources Holdings, a state-owned investment titan.

The chipmaker's unit will join hands with partners, including institutional investors under the municipal government of Shenzhen, to set up a joint venture to construct a factory to manufacture 12-inch (300-millimeter) wafers, the Wuxi-based firm said in a statement recently. The subsidiary will have a 75 percent stake in the JV and the involved parties will raise funds for the project based on their shareholding ratios.

The facility will focus on producing 40-nanometer and larger chips, which are mainly applied in automotive electronics, new energy, industrial control systems, and consumer electronics.

The investment marks a significant step in CR Micro's development strategy regarding the Guangdong-Hong Kong-Macao Greater Bay Area, it said. It should also help the firm get closer to the downstream market while setting a foundation for its long-term growth.

CR Micro is engaged in the complete industrial chain of chip design, wafer manufacturing, assembly, and testing. It has reached a relatively strong technological and manufacturing prowess in semiconductor devices and integrated circuits, such as power semiconductors and smart sensors, according to its website.

Editor: Emmi Laine, Xiao Yi