China's SMIC licenses chip technology from IBM

• The technology can be used to make mobile devices such as handsets integrated with 3G, multimedia and graphics chips

SHANGHAI, Dec 26 (Reuter) - China's Semiconductor Manufacturing International Corp will license sophisticated chip-making technology from International Business Machines Corp , the companies said on Wednesday.

The 45-nanometre bulk complementary metal-oxide-semiconductor (CMOS) technology will help SMIC upgrade production at its 300-millimetre wafer fabrication facilities, SMIC spokesman Matthew Szymanski said in a statement.

The technology can be used to make mobile devices such as handsets integrated with 3G, multimedia and graphics chips.

A source familiar with the deal told Reuters that the licensing agreement, which was consistent with U.S. export control and technology transfer rules, created a platform for possible future cooperation among IBM's partners in China's electronics market.

Shanghai-headquartered SMIC, the largest semiconductor foundry in China, said earlier this month it had invested $450 million in its new 300mm wafer plant in Shanghai, where pilot production has started. It owns or operates a range of other production facilities around the country. (Reporting by Andrew Torchia; Editing by Richard Hubbard)