Posted on 11/30/2020 9:05:37 AM PST by SeekAndFind
A high-level Chinese official acknowledged at a forum on Nov. 28 that many of China’s investment projects in the semiconductor industry were short-sighted and ultimately failed.
Wang Zhijun, one of the deputy ministers at China’s Ministry of Industry and Information Technology, made the comments while speaking at the China Development Forum hosted by the prestigious Tsinghua University in Beijing, according to Chinese state-run media.
What’s happening now in the semiconductor industry has happened to other Chinese sectors, such as steel, cement, and photovoltaics, leading to production overcapacity, said Wang.
He said the semiconductor industry needed greater supervision and that companies needed to merge or restructure in order to improve their competitiveness.
Despite years of state-directed investment and heavy government subsidies to develop China’s own chip-manufacturing capability, the country mostly imports the semiconductors it needs. The tiny chips power everything from cellphones and computers to missile systems. According to Chinese state-run media, China spent more than $300 billion in each of the past two years buying foreign chips, and is expected to spend a similar amount this year.
Through its industrial policy of “Made in China 2025,” Beijing aims to domestically produce 70 percent of its semiconductor needs by 2025. Such ambitions are unlikely to be met, according to a May report by Arizona-based semiconductor market research company IC Insights.
“IC Insights forecasts that at least 50% of IC production in China in 2024 will come from foreign companies such as SK Hynix, Samsung, Intel, TSMC, UMC, and Powerchip with fabs [short for fabrication plant] in China,” the report stated.
SK Hynix and Samsung are South Korean firms, while TSMC, UMC, and Powerchip are Taiwan-based semiconductor companies.
Wang’s Saturday comment was not the first time that Chinese officials have openly pointed out problems in China’s semiconductor industry.
(Excerpt) Read more at theepochtimes.com ...
It’s because of all those ‘bugs’ they keep trying to put in everything...............
years of state-directed investment and heavy government subsidies
I think I see their problem, the Biden plan.
Not stealing IP would help too, but then again Commies don’t believe in private property, so anyone would be an idiot to business with them, specifically 99.999999999% of U.S. business school post-grads ...
Greater supervision. Communists simply can't help but micromanage.
We's still be making alloy junction transistors and soldering them one by one to make desk sized millicomputers if the US was "blessed" with central planning...
China has incredible brain-power, it has money to throw at industries deemed “critical” and the CCP has managed to organize and control the entire country to perform whatever tricks it commands. For now it has total control of the Chinese population.
At the same time, China is centrally-planned, it is highly risk-averse, and its fascist-communist model is highly bureaucratic and highly political.
which of these opposing forces will hold sway, particularly when it comes to chip-making?
Almost everything the Chinese has produced was stolen. If Nixon hadn’t go ahead with his ridiculous open-door policy, China would still be a backwater country, nothing but a big-ass North Korea. And don’t give me this crap about how Nixon needed to do it to counter the Soviet Union.
Try getting rid of the communist party and see how much smarter the top engineers get.
"Taiwan Semiconductor Manufacturing Company, Limited (TSMC; is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies,[3][4] the world's most valuable semiconductor company,[5] and the world's largest dedicated independent (pure-play) semiconductor foundry,[6] with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. TSMC has a global capacity of about 13 million 300mm equivalent wafers per year as of 2020, and makes chips for customers with process nodes from 2 micron to 5 nanometers. TSMC is the first foundry to provide 7 and 5 nanometer production capabilities with the latter being applied on the new Apple A14 SoC, and the first to commercialize Extreme Ultraviolet (EUV) lithography technology in high volume.
DoD Blacklist - bump for later....
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