Qingdao West Coast New Area and Foxconn Technology Group signed an agreement through an online video conference on April 15 to carry out a semiconductor project in the region.

The project will expand the industrial chain of integrated circuits in the Qingdao West Coast New Area, promote the transformation and upgrading of the local integrated circuit industry and contribute to high-quality economic and social development, local authorities said.

Qingdao West Coast New Area and Foxconn sign a semiconductor project through an online video conference on April 15. [Photo/WeChat account: qbguanxiangshan]

The project will be jointly funded by Foxconn and Ronghe Holding, a local company. It will use the world's leading high-end packaging technology to package application chips for 5G communication and artificial intelligence, demand for which is quickly growing.

The project is scheduled to start construction this year, begin operating in 2021 and reach its full production capacity in 2025.

Wang Qingxian, Party secretary of Qingdao, delivers a speech during the online video conference on April 15. [Photo/qingdaonews.com]

Wang Qingxian, Party secretary of Qingdao, expressed hope that the two sides will deepen cooperation in industrial internet and AI and build Qingdao into a global hub for industrial internet, AI application, and the service sector.

Foxconn, the world's largest provider of electronics manufacturing services and the fourth-largest information technology company by revenue, has been ramping up efforts to develop its thriving semiconductor business.

"The Qingdao project is a core link in the industrial chain for chip design, manufacturing, and application. It also plays a leading role in bridging upstream and downstream links in the industrial chain and accelerating the upgrading of industrial quality," said Liu Yang-wei, chairman of Foxconn.

Liu said that Foxconn will work with Qingdao to promote the development of an industrial chain and high-end technological innovation and promote the construction of a "future city".

Liu added that his company will carry out more projects in Qingdao to create a new industrial ecosystem and contribute to the development of Qingdao's electronic information industry cluster and the industrial internet.

An aerial photo of Qingdao West Coast New Area [Photo/sipaphoto.com]