On March 19, China Resources Microelectronics issued a notice announcing that the company and China Resources Group reached an agreement on March 19 to establish a joint venture company to set up an 8-inch wafer manufacturing plant in Wuxi City, Jiangsu Province. According to the announcement, China Resources Microelectronics will participate in the operation of the 8-inch wafer production line by holding 19% of the joint venture company's indirect equity. The remaining 81% will be held by a wholly owned subsidiary of China Resources Group. The joint venture will invest US$500 million (about HK$3.9 billion) to set up a new 8-inch wafer production line in Wuxi. Among them, China Resources Microelectronics will bear 95 million US dollars (HK$741 million) and the remaining 405 million US dollars (HK$3.159 billion) will be borne by China Resources Group. This fully demonstrates the determination of China Resources Group to support the development of microelectronics business. The announcement said that the establishment of the joint venture company was aimed at enabling China Resources Microelectronics to participate in the rapid growth of China Resources Group Semiconductor Agency Business. All Agency Business (except Joint Venture Business) is currently carried out by China Resources Microelectronics Affiliated Company. The production capacity of the new 8-inch wafer facility will double the company's current capacity. It is expected that the manufacturing facility will be completed by the end of April this year. It is expected to start full operation in November this year and enter full operation by the end of 2009.