05:41 AM EDT, 05/09/2022 (MT Newswires) -- GTA Semiconductor, an affiliate of China Electronics Huada Technology (HKG:0085), plans to invest 26 billion yuan ($3.86 billion) for the second phase of its wafer factory in Shanghai's Lingang New Area, The Paper reported Thursday.
The move comes as GTA seeks to support efforts to ease the chip shortage affecting electric vehicle producers, according to the report.
The company has employed a closed-loop management system for the first phase of the factory to allow 1,000 of its staff to resume production despite the COVID-19 outbreak in Shanghai, the report said.
GTA Semiconductor and China Electronics Huada are subsidiaries of Huada Semiconductor.
Huada Technology's shares closed down nearly 4% in Hong Kong on Friday before the market closed for a holiday on Monday.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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