HKC (SHE:001399) will invest 4 billion yuan to establish a wholly-owned subsidiary, Zhejiang Huixin Advanced Semiconductor, for advanced semiconductor packaging and testing in Zhejiang, China.

The project will be built in two phases, with the initial phase targeting 12-inch hybrid chip packaging capacity of 20 million units per month within three years, according to a weekend filing with the Shenzhen bourse.

The second phase will be initiated based on the implementation of the initial phase.

Shares of the semiconductor display company rose 10% in recent trade.