Elpida Memory & Hejian will jointly build a 12-inch memory fab in Suzhou, China, with the joint-venture to be named "Hefa,"

Although semiconductor players are generally cautious about expanding in 2008 because the semiconductor market is expected to grow only 6-8% for the year, China players have shown more enthusiasm in building new fabs, the sources commented.

Apart from Suzhou, other Chinese cities that already house or will house 12-inch fabs are Beijing, Shanghai, Wuhan, Shenzhen, and Dalian.

The Taiwan government currently bans its semiconductor players from investing in 12-inch fabs in China. UMC has faced government investigation due to its investment in Hejian.

By: DocMemory
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