NANJING, July 25 (Xinhua) -- U.S.-based Applied Materials, the world's largest semiconductor equipment producer, will establish an equipment-manufacturing base in eastern Jiangsu Province -- its first in the Chinese mainland, local authorities said Monday.

The project, which is scheduled to start at the end of 2011, will be built in the economic and technology development zone of Yangzhou City, mainly focusing on producing solar photovoltaic machines.

Dr. Mike Splinter, Chairman and CEO of Applied Materials, said that because of the local government's support, Yangzhou owns a complete industrial chain of solar photovoltaic and LED industries.

Splinter also said he believes Applied Materials would make some achievements in Yangzhou in the future.

The Yangzhou base is estimated to reach an annual output of 300 machines with an annual production value of 2 billion yuan (309 million U.S. dollars).

Applied Materials purports itself to be the global leader in providing innovative equipment, services and software to the semiconductor, flat panel display and solar photovoltaic industries. It has a research and development center in Xi'an, capital city of northwest Shaanxi Province, and owns manufacturing bases in Germany, Israel, Italy, Switzerland, Singapore and Taiwan region