Shenzhen launches two RMB 10-billion state semiconductor projects: one for AI server chips, one for 12-inch advanced wafer capacity. Direct expansion of China's indigenous AI-optimized chipmaking infrastructure.
Two leading players in China's electronics supply chain have announced major investment plans in Shenzhen, with combined planned investment exceeding CNY 20 billion. The investments target two high-growth sectors: AI server printed circuit boards (PCBs) and large-diameter semiconductor silicon wafers.
On July 23, Avary Holding announced a CNY 10 billion investment to build an AI high-end substrate-like PCB (SLP) and flexible printed circuit (FPC) smart manufacturing base at its Third Campus in Shenzhen's Yanluo Street, Bao'an District. The land was acquired on May 25, 2026, with construction scheduled to begin in July 2026 and full completion expected by 2033. The company will fund the project through self-owned and self-raised capital.
Avary Holding characterized the investment as a strategic move to capitalize on rapid AI technology expansion and accelerate its position in high-end PCB manufacturing. The project aims to complete the company's strategic footprint across the AI "cloud, pipe, and edge" ecosystem. Once operational, it will expand operating scale, drive product line technological upgrades, and enhance overall profitability.
The announcement follows intensive capital market activity. In early July, Avary Holding unveiled a private placement plan of up to CNY 9.6 billion for the "Qingding AI Server and High-Speed Optical Module High-Density Interconnect (HDI) Board Project," which will add approximately 655,600 square meters of annual high-end HDI capacity and reinforce its technology and capacity advantages in AI servers and high-speed optical transceivers.
As the Shenzhen-listed platform of Taiwan-based Zhen Ding Technology Group, Avary Holding established an early presence in modified Semi-Additive Process (mSAP) technology and SLP products, with current mass-production capability for HDI boards exceeding six layers.
TCL Zhonghuan separately announced an investment of approximately CNY 11.96 billion to construct the "Shenzhen Large-Diameter Semiconductor Silicon Wafer Project for Integrated Circuits" through Shenzhen Zhonghuan Advanced, a subsidiary of its controlled entity Zhonghuan Advanced. Self-owned capital will cover no more than 40% of registered capital, with remaining funds raised through equity financing and bank loans.
The facility, located in Guangming District, covers approximately 160 mu (10.7 hectares) with an overall construction timeline of 60 months. The core construction phase spans approximately 18 months, covering foundation piling through first-phase equipment installation, process debugging, and trial production.
TCL Zhonghuan stated that the investment aims to seize growth opportunities in the semiconductor market and ensure long-term sustainable development. Once operational, the project will bridge the supply gap for high-end semiconductor materials in South China, establishing a coordinated nationwide footprint while enhancing the company's scale in large-diameter silicon wafer supply.
The simultaneous commitment of both industry leaders highlights the accelerating cluster effect of the Guangdong-Hong Kong-Macao Greater Bay Area in advanced electronics and semiconductors, confirming that AI compute demand and semiconductor localization are driving robust upstream infrastructure investments across the hardware supply chain.