A signing ceremony for a semiconductor diamond substrate project is held in Rugao High-tech Industrial Development Zone on Sept 16. [Photo/WeChat account: rugaofabu]

An agreement for a semiconductor diamond substrate plant was signed on Sept 16 in Rugao High-tech Industrial Development Zone in Rugao, Nantong.

The project, which will cover an area of 2.2 hectares, will receive about 1 billion yuan ($154.7 million) in investment, including more than 500 million yuan in equipment investment.

Its investor is a newly established company that registered in Rugao in September. It will rent a 6,000-square-meter plant for production during the transition stage and start operations later this year.

Construction of a new plant is expected to start in June 2022 and be completed in December 2023. When operating at a full capacity, the project is expected to generate 1 billion yuan in annual sales.

Rugao High-tech Industrial Development Zone is a hub for the third-generation semiconductor industry in Rugao and the new project will inject new momentum to the sector's development, said He Yijun, Party secretary of Rugao, at the signing ceremony.

He also promised that the local government will keep improving the city's business environment and offer the best services to ensure that the project progresses smoothly.