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An aerial view of Shaoxing in East China's Zhejiang province. [Photo/zj.zjol.com.cn]

Shaoxing in Zhejiang province is phasing out outdated production capacity and upgrading its industries.

Machines in a plant at Shaoxing Integrated Circuit Design Industrial Park are operating around the clock to produce 8-inch silicon wafers. Every month, 50,000 wafers are produced here.

Just a year ago, the plant was an obsolete 25,000-square-meter distillery.

In January 2020, the construction project aimed at upgrading the distillery into an industrial park started. On July 13, the park began operation and has to date attracted more than 30 companies.

Officials at the economy and information bureau of Yuecheng district said that by concentrating distilleries and textile companies in an area, more space can be allocated for developing high-quality projects.

The city well-known for its textiles, sauces and yellow rice wines is transforming into one that excels in integrated circuit and biological medicine.

Statistics released by Shaoxing authorities revealed that the city's Binhai New Area is home to 98 large-scale integrated circuit companies that generate over 30 billion yuan ($4.64 billion) in output value. Yuecheng district currently has over 100 biopharmaceutical companies.

Last year, despite the impact of the COVID-19 pandemic, the output value of Shaoxing's integrated circuit and biopharmaceutical industries grew by 60 percent and 63.5 percent year-on-year respectively.

The decision to make such a change came from challenges brought by high-energy consumption and severe pollution.

This change has resulted in a reduction of 150,000 tons of sewage discharge. This volume can fill 80 standard swimming pools.