DRAM maker Powerchip has decided to resume its China fab project. The move is being seen as part of a drive to plug a hole in a coming shortage in DRAM demand.

The fab is being built in Xuzhou, which is in the Jiangsu Province. It will make 8-inch wafers, according to a Chinese-language Economic Daily News. The Xuzhou fab will cost $293 million and is being built as part of a partnership with  local enterprises and government organisations.

Powerchip recently got Tai government approval to produce 8-inch wafers on 0.18-micron or or less advanced processes in China. The project had been grinding to a halt lately and many expected it to be mothballed completely.

However it looks like the drive to push the project through has come on the new news that industry analysts are expecting there to be a shortage of DRAM.