Semiconductor company RS Technologies (TYO:3445) via its Chinese consolidated subsidiary GRITEK will establish a new silicon wafer plant in Inner Mongolia by April.

A new company, called Guojing Semiconductor Materials (Baotou), will be set up with a capital of 400 million yuan to facilitate this expansion, according to a Tokyo bourse filing on Thursday.

The plant will manufacture single-crystal silicon and large-diameter single crystals for semiconductor etching equipment consumable parts.

Baotou City was selected as the location due to its reasonable utility costs compared to the company's existing bases in Beijing and Dezhou.