The move comes as CXMT seeks ‌to boost production amid a global chip shortage driven by AI infrastructure spending. The new Beijing 12-inch plant would be built in Yizhuang, about 20 km (12 miles) southeast of central Beijing, where CXMT already operates a fab producing dynamic random access memory (DRAM) chips, the sources said. The talks are at an early stage and the size and structure of any funding package could change, the sources said. It was not immediately clear whether ⁠the funding would come directly from the development zone's administrative authority or through its investment vehicles. CXMT operates two 12-inch DRAM fabs ​in ​Hefei and one in Beijing, each with capacity of about 100,000 wafers per month, the ​people said.