China-based foundry chipmaker Semiconductor Manufacturing International Corporation (SMIC) has said it has reached an agreement with the Wuhan municipal government to share the ownership of Wuhan Xinxin Semiconductor Manufacturing, a 12-inch chip plant located in the central Chinese province of Hubei.

Commencing operation in 2008, Wuhan Xinxin is owned by the local government and has been managed by SMIC. Previous rumors claimed that SMIC was seeking some others to take over its role at the fab, with Taiwan Semiconductor Manufacturing Company (TSMC) and Micron Technology reportedly having been approached.

SMIC announced on October 29 that the company has signed an MOU with the Wuhan East Lake Hi-Tech Development Zone Administrative Committee to cooperate and jointly invest in the 12-inch wafer production facilities of Wuhan Xinxin through cash injection.

SMIC did not disclose financial terms of the deal.

Under the cooperation framework agreement, Wuhan Xinxin will be a joint venture between SMIC and the Wuhan municipal government. The JV will focus on 65nm and 40nm production with an aim to ramp up its monthly capacity to 45,000 wafers over the next three years.

In other news, SMIC will host its third-quarter earnings conference call on November 3.