(Yicai Global) Jan. 8 -- CR Microelectronics, part of central-owned China Resources Holdings Co., will build the country's largest power semiconductor plant in southwestern China.

The firm struck a deal to build the factory with Chongqing municipal government and the developer of the city's Xiyong Micro-Electronics Industrial Park, local newspaper Chongqing Daily reported today. Set up in 2005, the area is the first such park for integrated circuits and software information in central and western China.

The new plant will significantly increase CR Microelectronics' production capacity; accelerate up- and downstream fields, such as raw materials manufacturing, chip design and package testing; and scale up Chongqing's integrated circuit sector, the firm said.

Power semiconductors are mainly used in high-power electrical equipment. Useful functions include dissipating heat, regulating output and protecting equipment.

CR Microelectronics completed its merger with AVIC Chongqing Microelectronics Co., a unit under Aviation Industry Corporation of China Ltd., last month, marking the first time a Chinese state-owned enterprise in the field had undergone restructuring. After the change, the company held a 6.5-percent share of the country's power semiconductor market.