Forwarded from 📡Guardians of Hong Kong
China's Great Leap Forward on "Nationwide Manufacturing of Chipsets", thousands of failed businesses
(27 Sep) At a time when [companies] like Huawei and SMIC are sanctioned by the US, many have embarked on a "Nationwide Manufacturing of Chipsets" movement à la "Great Leap Forward". According to the Chinese newspaper 21st Century Business Herald, China has established more than 170,000 semiconductor firms in under two years. Anhui and more than ten other provinces and municipalities have formulated plans for the IC [integrated circuit] industry that will reach 1.42 trillion CNY(approx. 6.17 trillion TWD [210 billion USD]). However, Radio Free Asia reported that while China poured its resources into "chip-making", its underdeveloped technology left thousands of firms crumbling before they could launch. Among them were Wuhan Hongxin, Tacoma (Nanjing), and Shaanxi Kuntech Semiconductor.
Chinese scholars: difficult to effectively implement planned economic practices
A top Chinese financial scholar expressed that the foundational knowledge, technology and creative environment for research and development of integrated circuits in China are lagging. Even with unlimited capital investment, this kind of administrative "control" over resources from the era of economic planning would be difficult to implement effectively. A previous research report from China stated that the overall demand for talent in the IC industry reached 700,000 while the supply was only 300,000.
#China #GreatLeapForward #ChipTechnology #NationwideManufacturing #Failed #Business
Source: Liberty Times News Taiwan
Hong Kong HKLIG Forum
Translated by: Hong Kong Echo
(27 Sep) At a time when [companies] like Huawei and SMIC are sanctioned by the US, many have embarked on a "Nationwide Manufacturing of Chipsets" movement à la "Great Leap Forward". According to the Chinese newspaper 21st Century Business Herald, China has established more than 170,000 semiconductor firms in under two years. Anhui and more than ten other provinces and municipalities have formulated plans for the IC [integrated circuit] industry that will reach 1.42 trillion CNY(approx. 6.17 trillion TWD [210 billion USD]). However, Radio Free Asia reported that while China poured its resources into "chip-making", its underdeveloped technology left thousands of firms crumbling before they could launch. Among them were Wuhan Hongxin, Tacoma (Nanjing), and Shaanxi Kuntech Semiconductor.
Chinese scholars: difficult to effectively implement planned economic practices
A top Chinese financial scholar expressed that the foundational knowledge, technology and creative environment for research and development of integrated circuits in China are lagging. Even with unlimited capital investment, this kind of administrative "control" over resources from the era of economic planning would be difficult to implement effectively. A previous research report from China stated that the overall demand for talent in the IC industry reached 700,000 while the supply was only 300,000.
#China #GreatLeapForward #ChipTechnology #NationwideManufacturing #Failed #Business
Source: Liberty Times News Taiwan
Hong Kong HKLIG Forum
Translated by: Hong Kong Echo
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