A project of large-size silicon wafers with total investment of 11 billion yuan ($1.63 billion) will be stationed in Nanhu district of Jiaxing city, Zhejiang province this year, according to an official from the district.

Silicon wafers are the most essential elements for semiconductor integrated circuits. They are available in a variety of diameters from 25.4 mm (1 inch) to 300 mm. A larger wafer diameter (above 300mm) enables manufacturers to produce more semiconductor devices from a single wafer, which is important to enhance productivity and efficiency.

The project to be launched in Nanhu, expected to produce 4.8 million pieces of large-size silicon wafers every year, is a result of the cooperation between the district and Shanghai Kangfeng Investment Management Co Ltd. It will start construction on Feb 25 and be put into use within two years. 

The district official said the project is of great significance to the development of the digital economy in Nanhu, as well as an important step to transform and upgrade local industries.