Global Foundries, one of the world's leading wafer fabrication company, launched its Chengdu 12-inch (305-mm) wafer fab project in Chengdu High-Tech Industrial Development Zone in February.

As the first 12-inch wafer production line in Southwest China, the project will attract investment totaling more than $10 billion, making it Global Foundries' largest and most advanced wafer production base in China.

Wafer is the most commonly used semiconductor material, and it is available in different diameters, ranging from 25.4 mm (1 inch) to 305 mm (12 inches) or even larger.

Global Foundries, headquartered in Silicon Valley, the United States, is the world's leading full-service semiconductor design and fabrication company. Its 22FDX 22nm FD-SOI production process stands out from its competitors. FD-SOI refers to fully-depleted silicon-on-insulator technology and one of its advantages is that it creates less variability in the production process, leading to higher yields.

Chengdu is the ideal place for the project as the city has complete infrastructure, a skilled labor force, and high-tech company cluster, said Sanjay Jha, CEO of Global Foundries.

The company's project fills the gaps in 12-inch wafer production in Southwest China. It will enlarge the scale of Chengdu's electronic information and integrated circuit industries, which will help the city to build a globally renowned integrated circuit industry base, according to an official at the zone.

According to the city's plan, the output value of the electronic information manufacturing industry will reach 570 billion yuan ($83.04 billion) by 2020, with an average annual growth rate of 20 percent; software and information services will achieve an output value of 430 billion yuan, with an average annual growth rate of 16 percent.

The city of Chengdu and Global Foundries are also looking at funding the Chengdu Integrated Circuit Ecosystem Plan, with a view to carrying out additional, in-depth cooperation in various fields.