China's previous capital city, Nanjing, is now home to a big Taiwanese semiconductor investment.

The Nanjing municipal government has inked a deal with Taiwan Semiconductor Manufacturing Co., Ltd. to build a new 12-inch wafer factory and a design service center in the city in the future. According to TSMC, they will invest USD3 billion, which is nearly CNY20 billion, for the new projects in Nanjing.

Morris Chang, chairman of TSMC, said in a statement that in recent years, the Chinese mainland semiconductor market saw fast growth. By building 12-inch wafer factory and design service center in Nanjing, the company hopes to provide closer supports to clients, while further expanding business opportunities in mainland China.

The new factory will be located at Nanjing's Pukou Economic Development Zone. With a planned monthly production capacity of 20,000 12-inch wafers, the factory is expected to put into production in the second half of 2018.