The city of Lishui in East China's Zhejiang province recently signed off on a major foreign investment project in the semiconductors industry.

The agreement was inked at the Forum on Investing in Zhejiang, held on May 16 in the province's Ningbo city.

The project, with a planned total investment of $200 million, is a memory storage product packaging and testing and research institute. It will be owned and operated by Hong Kong Peakmi Technology, a leading company in the field of semiconductor chips.

It's expected to generate an annual output value of 2 billion yuan ($285.72 million) after ramping up to full annual production capacity of 1 billion integrated circuit chips.

Zeng Fanrong, vice-president of Peakmi Technology, said it decided to invest in Lishui because it had a superior ecosystem, a complete semiconductors industry supply chain, a constantly improving business environment and a high regard for sci-tech talent.

The company plans to introduce top engineers from Malaysia, advanced technology and to train top-flight people in the field of memory products for the project company, Zeng added.