The Lishui Economic and Technological Development Zone – located in Lishui city in East China's Zhejiang province – recently signed a contract with Beijing-based Tunghsu Group Co Ltd for it to build an optoelectronic semiconductor materials plant there.

The development, with a total investment of 11 billion yuan ($1.73 billion), is said to be the first industrial project worth more than 10 billion yuan in Lishui.

The project head said that there were a number of factors behind the company choosing Lishui as the site of the major plant.

He said it is a dynamic city with great development potential, had a great location for logistics and had a significant resource advantage.

Moreover, the city had a clear and efficient industrial layout in semiconductor manufacturing and other related fields and had developed a healthy climate for innovation and entrepreneurship.

After the plant is ramped up to full production, Lishui is expected to become an important production center for high-end optoelectronic semiconductor materials in China.