UPDATE 1-SMIC plans integrated circuit investment in Beijing

* To invest $6.7 billion in IC plant in Beijing

* Submitted environmental report for 2nd phase of plant

* Project to take 7-8 years to complete -source

(Adds detail, background)

HONG KONG/SHANGHAI, March 28 (Reuters) – SMIC (0981.HK: Quote, Profile, Research)
plans to invest 46 billion yuan ($6.7 billion) in an integrated
circuit plant in Beijing, a government document showed on
Monday, to satisfy rising global demand for electronics.

SMIC (SMI.N: Quote, Profile, Research), the world’s fourth largest contract chipmaker
and China’s biggest, has submitted its environmental report for
the second phase of its Beijing operations, according to the
website of China’s ministry of environmental protection.

Once the ministry approves the report, SMIC will then need
the green light of the National Development and Reform
Commission, China’s powerful state planning body.

SMIC’s Beijing project will likely take about seven to eight
years to complete as part of the chipmaker’s long term expansion
plans, said a source close to the company, who spoke on
condition of anonymity.

SMIC has previously said that it plans to invest $12 billion
over the next five years to expand its output and aims for an
annual capacity of 2 million 12-inch wafers by 2015. SMIC’s
12-inch fabs are now in Beijing, Shanghai and Wuhan.

SMIC’s Hong Kong shares ended flat on Monday, outperforming
the Hang Seng Index’s (.HSI: Quote, Profile, Research) 0.39 percent fall.
(Reporting by Kelvin Soh in Hong Kong and David Lin in
Shanghai; Editing by Mike Nesbit)

UPDATE 1-SMIC plans integrated circuit investment in Beijing