China is investing some $608 million to build a new integrated circuit (IC) industrial park inside the Zhongguancun (Haidian) Science Park in Beijing starting 2017. Construction of the new complex is expected to be completed in 2018 with the first tenants beginning operations this same year.

Like Us on Facebook

The new IC industrial park is expected to house 150 firms, mostly Chinese IC manufacturers, plus at least eight international IC firms. Beijing expects the IC park to have an annual output worth some $4.5 billion. Other firms expected to locate to the IC park are those in the IC packaging and testing sectors.

Beijing said the IC park will be a one-stop supply chain for IC markets, including firms into the IoT (Internet of Things) and smart devices. The park serves China's aggressive focus on self-sufficiency in the semiconductor industry.

Established in 1988, the Zhongguancun Science Park where the new IC industrial park is located spearheads China's technological innovation. It is home to over 9,300 high-tech firms whose total revenue in 2015 hit $623 billion.

Zhongguancun hosts the world's second-largest number of most valuable tech startups. There are over 40 unicorn firms (or tech startups valued at over $1 billion) Zhongguancun, a number second only to Silicon Valley in California.

Over the next five years, Zhongguancun will support Beijing's evolution into a national technological innovation center.

"Intel Corp, Microsoft Corp and Siemens AG have established subsidiaries, R&D center or incubators here. More than 200 companies among the Fortune Global 500 firms have set up branches," said Liu Hang, a member of the Administrative Committee at Zhongguancun.

TagsZhongguancun Science Park, Beijing, IC industrial park