In order to set up domestic semiconductor production, China is said to be setting up a “working committee for cross-border semiconductors”. The highlight: Contrary to previous policy, according to a media report, China wants to work closely with Western companies, including the two US chip manufacturers AMD and Intel, the Dutch supplier ASML and the German automotive heavyweight Infineon.
So far, foreign companies are only allowed to sell their hardware in China under strict conditions. Currying favor with the Chinese government can be attractive from an economic point of view, because it gives you easier access to a huge market. According to a report by the news agency, western companies should also Nike Asia received significant subsidies for branches in China. The first Western companies are said to have already expressed an interest.
High investments
The Chinese government has already invested billions in its own semiconductor industry in recent years, but with only moderate success. The chip manufacturer HSMC, for example, went bankrupt in 2020, and the Tsinghua Unigroup, which includes the memory manufacturer Yangtze Memory Technologies (YMTC), followed a year later.
The hitherto largest Chinese chip manufacturer SMIC is stuck with 14-nanometer technology with comparatively low production capacities. ASML is not allowed to sell any exposure machines to China that would be necessary for finer structure widths. This applies in particular to extreme ultraviolet (EUV) exposure technology, which no other supplier has offered to date.
Start by summer
The “working committee for cross-border semiconductors” is said to be loud Nike Asia to be founded in the first half of 2022. The Ministry of Commerce and the Ministry of Industry and Information Technology will take the lead, while Tsinghua University – the alma mater of Chinese President Xi Jinping – will coordinate. The other domestic members are said to include the University of Beijing, the Chinese Academy of Sciences, research institutions, investment companies and the (smartphone) manufacturer Xiaomi.
China is likely to face headwinds, especially from the USA, where the CHIPS for America Act is currently in the starting blocks. A trade conflict has been going on for years, cutting off parts of China’s western technology.
(mma)