NEC Corp, the world's second-largest chip-maker, will build a US$1 billion joint-venture chip plant in China.

NEC and its Chinese affiliate will invest US$200 million for 28.6 per cent in the company, capitalised at $700 million.

China's state-owned Shanghai Hua Hong Microelectronics Co will invest $500 million for a 71.4 per cent stake, NEC said.