Six hundred million core projects collapse in China

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 Six hundred million core projects collapse in China


Star project is empty

Core building heat leads to the end of the tide

The factory is overgrown with weeds, the factory is still in the state of unfinished blanks, and the office space has been empty for a long time The project is in arrears.

The company was established in December 2015, planning to produce power management chips, micro electro mechanical system chips, etc. the first phase of the project is planned to invest 2.5 billion yuan, but the actual amount of investment is only 250 million yuan. Due to the change of shareholders situation, at present, the equity corresponding to this part of investment is taken over by the subordinate platform of Nanjing Economic and Technological Development Zone.

The shareholder government platform also does not want the project to be completed, and tries to find investors. However, due to the large demand for funds, the complexity of multi-party cooperation in such links as intellectual property rights and technology transfer, as well as the concerns about the remaining problems of the Nanjing dekema project, no suitable investors have been found.

Li Ruiwei, the legal representative of Nanjing dekema, has been hard to find in the name of looking for investors. He has repeatedly ignored the court summons and failed to appear in court. At present, he has been restricted from high consumption and exit.

There are a lot of weeds inside and outside the factory area of Nanjing dekema project located in Nanjing Economic and Technological Development Zone. Looking from the iron fence, the workshop is still in the state of unfinished blank

The reporter found that in the past year or more, there have been frequent incidents of semiconductor projects, including six large projects with planned investment reaching 10 billion, involving five provinces in the southeast coastal, central, southwest and northwest regions of China.

In Chengdu high tech Zone of Sichuan Province, Gexin (Chengdu) integrated circuit manufacturing Co., Ltd. (hereinafter referred to as Chengdu Gexin) has closed down. The plant, covering an area of 700 mu, is surrounded by several kilometers of green steel wire mesh. Except for a security guard at the entrance, the factory is empty. In 2017, the company was jointly established by us chip foundry company Grosvenor and the Chengdu municipal government, with a planned investment of US $9.053 billion. At that time, it was known as the production base with the largest investment scale and the most advanced technology in the world.

In Fengxi new town, Xixian new area, Shaanxi kuntong Semiconductor Technology Co., Ltd. (hereinafter referred to as Shaanxi kuntong) with a planned area of about 2000 mu is in trouble, and all the core executives leave. The company was established in 2018 and originally planned to build the 6th generation flexible screen production line.

In Huaian, Jiangsu Province, the local key project Dehuai Semiconductor Co., Ltd. has not been started yet. When the company was founded in 2016, the total planned investment was 45 billion yuan. In 2018, the company announced that the first phase of Dehuai semiconductor project was officially put into operation. At the end of 2019, employees began to ask for salary through the governors mailbox and lawsuit. At present, the company is in the state of semi shutdown, and the local government departments have set up relevant working groups to intervene in the company to promote the relevant revitalization work.

In Guizhou Guian New District, Guizhou huaxintong Semiconductor Technology Co., Ltd. (hereinafter referred to as huaxintong) is still in bankruptcy liquidation. In 2016, the Guizhou provincial government aimed at the server processor (CPU), which has extremely high requirements for industrial ecology, and invested billions of yuan to cooperate with Qualcomm to establish huaxintong. Three years later, huaxintong was unable to sustain its business and announced its closure.

Big shareholders of 0 yuan skillfully play empty hands

The prospect of semiconductor industry is attractive, which arouses the enthusiasm of investment and construction in various regions. According to the reporters interview, some local governments have invested a lot of money for the above-mentioned suspension projects through investment funds and other means - some have invested tens of millions of yuan in research and development funds, some have spent hundreds of millions of yuan on technology licensing, and others have spent billions of yuan on building factories, paying wages and purchasing technology authorization.

Some of the industrys major shareholders, who should have led the investment, either made 0 investment, or made little contribution, or recovered their investment in disguised form by collecting huge technology licensing fees and other covert ways.

What is more noteworthy is that such a huge investment has not brought a breakthrough in the neck sticking problem, some are just repeated capacity construction.

As of the suspension, Chengdu grid cores main operating body is only a chip factory with manufacturing processes of 180 nm and 130 nm. The plant received technology and old equipment from grofands Singapore plant.

When huaxintong invested in the server processor in 2016, China has already made achievements in this field.

Shaanxi kuntong plans to enter the field of flexible screen in 2018. At that time, domestic leading enterprises BOE and vicino have realized the mass production of the 6th generation flexible screen production line.

A person in charge of an enterprise who had been poached by the suspended project told the reporter that talents in Chinas semiconductor industry were very scarce. After two or three years or even longer delay, it is difficult to keep up with the technical development of the original team and become a direct loss of the industry.

There are many difficulties in reinvigorating

Industry confidence hit hard

An investment promotion cadre who took over one of the suspended projects said, we have tried our best to find investors for the project. In more than a year, we have contacted more than ten strategic investors and financial investors. However, there is a large demand for funds, and we need to balance the demands and interests of all parties. Few projects can be negotiated.

There is no bank deposit, vehicle, real estate or other property available for execution under the name of the person subjected to execution. The peoples Court of Qixia District of Nanjing assessed the asset value of the project and found that the plant under construction was not completed due to the failure of the executee to pay the corresponding project funds, which had little value for disposal.

Basically did not do other work, the main energy is to do liquidation. An insider of huaxintong said that the failure of the project is a blow to the development of Guizhous big data industry.

The government paid the bill rashly

Chip false fire causes worry

Guizhou was vigorously developing big data and needed some benchmarking projects. Insiders reflect that the cooperation between Guizhou Province and Qualcomm to build huaxintong is taking what they need.

Huaxintong office building has a magnificent appearance and covers an area of nearly 10000 square meters. In the past, it has received various kinds of visitors from time to time. However, there is no production plant here from the beginning to the end. The research and development and operation are carried out in Beijing and Shanghai.

The appearance of huaxintong office building is very impressive, covering an area of nearly 10000 square meters. It is particularly conspicuous in the surrounding simple buildings. This photo is taken by Dingjie

Moreover, the local government has become the main culprit because of the lack of understanding of the industry.

Many similar projects require the government to pay zero land price, build factory buildings on behalf of others, and pay a lot of subsidies. We think that the requirements of the project are not harsh, but also can drive the upstream and downstream industries. Unexpectedly, there are problems in the capital, technology and team of the industrial side.

Some local governments have limited perspectives on the development of high-end industries and lack the professional ability to judge the industrial prospects and team strength, which is easy to be wronged, said a local government official who introduced the suspension project

Due to the weak foundation of Chinas semiconductor industry, under the background of vigorously developing the semiconductor industry in various regions, industries with technological advantages have become scarce resources. A government investment promotion official told reporters that some industries aim at government funds, land and other resources, and strive to raise prices in many places; while some industries are highly packaged, but in fact lack of core technology and the team is not complete. If some local governments intervene lightly in the industry, it is easy to be hoodwinked.

Can the suspension of major projects make government officials calm down in industrial investment? The reporter asked a person in charge of a local investment project investment company, and he said: some local government officials I have contacted are very confident. Generally speaking, they are more careful than before, but they still cant be called professional and rational.

Enterprise survey data show that the number of chip related enterprises in China increased rapidly in the first half of this year. As of July 20, there were 45300 chip related enterprises in China, of which 4600 were newly registered in the second quarter of this year, up 207% year-on-year and 130% month on month.

Zhu Jing, Deputy Secretary General of Beijing Semiconductor Industry Association, said that the semiconductor industry has attracted many domestic enterprises to participate. In some subdivided fields, there are even nearly 100 enterprises competing. Nevertheless, the gross profit margin of these enterprises is far below the international level, and most of the high-end markets in this field also rely on the supply of international enterprises.

Zhu Jing said that from the specific project point of view, following the large projects in the field of large silicon chip a few years ago, the similar situation has appeared in the field of compound semiconductor. In the first half of 2020, nearly 20 places in China have signed contracts or started construction of compound semiconductor projects, with a total planned investment of more than 60 billion yuan. Moreover, 80% of these projects are located in the second, third and even fourth tier cities in China, which are generally areas with weak semiconductor industry foundation and no relevant project construction experience. The sustainability of these projects has once again aroused the concern of the industry.

Strengthen overall planning

Tackling the problem of neck sticking

The reporter found that in recent years, some government departments have helped China chip to break through the neck jam problem, and has achieved phased results.

In the manufacturing field, SMIC landed on the board in July this year. Its 14 nanometer process chip manufacturing technology represents the most advanced level of Chinas R & D integrated circuits; the Yangtze River store announced in April this year that it has successfully developed 128 level QLC3DNAND flash chips, and achieved a leap from 32 to 64 to 128 in just 3 years. In the stage of capacity climbing, the domestic memory module carrying the chip has been popular as soon as it comes into the market. In addition, Cambrian, Huada Jiutian, Shanghai microelectronics, Jiangfeng electronics and other enterprises have made progress in chip design, design tools, equipment and materials.

How can local governments help the rebirth of China chip?

Government officials in many places said: first, there is a good political ecological environment. The growth cycle of large semiconductor projects is very long, and it takes at least 10 years from the establishment to the profit. Therefore, the local government is required to work one after another to ensure the sustainability of the project and industrial development.

In addition, semiconductor is a highly globalized industry. Most domestic semiconductor projects are jointly established by talent teams from home and abroad. International cooperation is also indispensable in technology, supply chain and market. Local governments investing in projects need to be familiar with the international rules of industrial investment and enterprise operation, and prevent compliance risks from legal and other aspects.

Industry insiders also suggested that the state should strengthen the overall layout of the semiconductor industry, concentrate its strength to break through the key core technology fields, and focus on supporting the semiconductor projects that have passed the technical and mass production difficulties to become bigger and stronger.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }Author: Chen Xianfa, Dong xuepan ye, Xiang Dingjie, Zhou Lin, Li Hao, Li Qianwei, editor in charge: Shi Jianlei_ NBJ11331