China's state-owned Tsinghua Unigroup Ltd. on Thursday unveiled an ambitious plan to construct a $30 billion memory chip factory to bolster its local production capacity.   

The factory will be built in Nanjing city, the capital of eastern Jiangsu province. It is expected to have a capacity produce 100,000 monthly chip wafers.

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In a statement on its official website, Tsinghua Unigroup said that the Nanjing factory is a part of its effort to build a world class chip industry in China. The company said it hopes that this ambitious decision will pave the way for more developmental activities.

The new factory will reportedly make DRAM and 3D-NAND flash chips, which are widely used in many modern electronic devices including smart phones and desktop computers.

Last year, Tsinghua Unigroup announced a plan to build a separate $24 billion chip factory in the Chinese city of Wuhan.

The state-owned chipmakers decision to expand its local capacity comes as it is facing difficulties in acquiring foreign companies, mainly due to regulatory hurdles.  In 2015, Tsinghua's management made an unsuccessful attempt to acquire U.S. based chipmaking company Micron Technology Inc.

Last year, the U.S. government also derailed Chinese chipmaker Fujian's bid to acquire Aixtron's American business division over security concerns.

However, Tsinghua manage to acquire a six percent minority stake in American chip making company Lattice Semiconductor Corp.   

In recent years, the Chinese government had been encouraging chip companies to go big on foreign acquisition in a bid to build a world-class chip manufacturing unit. However, regulatory hurdles in the U.S. seems to have punctured this ambitious plan.        

TagsTsinghua Unigroup, china, Nanjing, Tsinghua Chip Making Factories