Guangzhou, Sep 21 (IANS): A 12-inch chip production line, the first of its kind in south China's Guangdong province, has begun operation.

The 12-inch chip production line is in the first phase and at present focuses on manufacturing 0.18nm-90nm analog ICs and discrete devices.

It is expected to achieve a monthly production capacity of 40,000 12-inch wafers, Xinhua news agency reported on Saturday.

With a total investment of 28.8 billion yuan (about $4.06 billion), the facility began construction in March 2018 in Guangzhou, capital of Guangdong.

The second phase will focus on the world's most advanced 65nm-40nm high-voltage BCD technology.

"The project is aimed at scarce products in the country, such as high-end analog chips, automobile electronics, biomedical testing and 5G front-end modules, which is expected to further drive the upstream and downstream enterprises to achieve a production value of 100 billion yuan," said Tony Chen, president and CEO of CanSemi Technology Inc., which owns the production line.

Statistics showed that there are 26 12-inch chip production lines being built and under construction in China, and upon completion, the total production capacity of 12-inch chips will reach 1.11 million per month.

Guangdong already has two chip manufacturers, featuring production of 8-inch and 6-inch wafers, with a combined capacity of about 70,000 wafers per month. It is far short of the chip demand in the Guangdong-Hong Kong-Macao Greater Bay Area.