(Yicai) Aug. 16 -- The Lin-gang Special Area of China Shanghai Pilot Free Trade Zone has kicked off 12 key industrial projects with a total investment of CNY28.8 billion (USD3.9 billion) to strengthen the high-tech influence of the region.

The undertakings involve integrated circuits, artificial intelligence, new materials, and smart vehicles, Yicai learned as the area organized a groundbreaking ceremony yesterday. Two of them are worth over CNY10 billion of investment. Some of the investors are Air Liquide, a French gas and liquid provider in healthcare, and Prominent, a German water treatment firm.

This year, the special economic zone in Shanghai could attract more than CNY40 billion in manufacturing investment, becoming an important engine for industrial investment in Shanghai, according to Lu Yu, director of a division of the area's management committee.

When introducing new projects in Lingang, it is important to consider how the projects improve the local industrial chain and the efficiency of clustering, said Lu. For example, JCET Group, a Chinese semiconductor maker, started building its automotive chip packaging and testing project yesterday. The plant will provide global clients with products and services related to electric and smart vehicles with high standards, Lu added.

Lingang's integrated circuit industry is relatively complete, but the packaging and testing capabilities are insufficient, Lu said, adding that the project by JCET can fill the gap. On the other hand, it is very important for Lingang to build an independent and controllable industrial chain for automotive chips, Lu added.

The area has gathered more than 230 IC companies, including Semiconductor Manufacturing International, GTA Semiconductor, and Zing Semiconductor, to invest nearly CNY270 billion (USD37 billion) in designing and producing chips and core components in Lingang, per Lu. By 2025, the scale of such an industry could exceed CNY50 billion.

The special free trade area was established in 2019 and its gross domestic product has grown by over 21 percent on average each year. The fixed-asset investment has jumped by almost 40 percent per year while the total industrial output value of big firms has surged by nearly 38 percent. The zone has attracted 145 industrial projects, 17 of which have begun production, according to official data.

Editors: Tang Shihua, Emmi Laine