China core meets with a wave of unfinished business: Six 10 billion level projects collapse

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 China core meets with a wave of unfinished business: Six 10 billion level projects collapse


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.

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.

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 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.

In Wuhan airport economic and Technological Development Zone, Wuhan Hongxin Semiconductor Manufacturing Co., Ltd., with a total planned investment of 128 billion yuan, is struggling and on the verge of bankruptcy. In December 2019, the companys first high-end lithography machine entered the factory and held a grand ceremony. Now, the brand new but not yet used lithography machine has been mortgaged to the bank.

Big shareholders of 0 yuan skillfully play empty hands

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.

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.

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.

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.

The reporter interviewed the local government where these suspension projects are located, and learned that although all localities are trying to revitalize the suspension projects and reduce the losses as much as possible, most of these projects involve a series of complex problems, and the residual value is not high, so it is very difficult to dispose of them.

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.

From the perspective of industrial base, economic strength, human resources and other elements, Guizhou has a higher threshold to be a server processor. An insider said that there are many reasons for the projects unsustainability, not only due to the influence of Qualcomm, but also related to the chips market promotion and return on investment. The business model of leap forward and rash entry is risky.

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.

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.

Strengthen overall planning

The interviewees from the industry said that the semiconductor industry can not do without the support of government departments, and many successful projects are backed by local governments. However, the professionalism of the semiconductor industry also puts forward higher requirements for the investment decision-making level of local governments.

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.

Second, we should have a team of professional cadres who understand the laws of industry and dare to make scientific plans. The semiconductor industry is highly professional. A professional and bold cadre team can choose the investment fields in a differentiated way, adhere to the market-oriented operation, borrow wisdom and strength from the capital side, experts, scholars and leading enterprises, so as to realize the benign interaction and stable operation of the government, experts, enterprises and the market.

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.