China's major chip developer Semiconductor Manufacturing International Corporation (SMIC) in Shanghai has obtained a credit line of 85 million euros for long-term export from two European banks, a source with the SMIC said.

SMIC will use the loan to purchase photo etching technology-related equipment to expand its output, according to the contract signed between the SMIC and the ABN AMRO Bank N.V. of the Netherlands and the Comerz Bank (Nederland) N.V. of Germany.

Established in 2000, SMIC has launched four plants manufacturing eight-inch chips. In January this year, it launched a plant to produce 12-inch chips in Beijing.

(Xinhua News Agency December 30, 2005)