Slashdot: A Cautionary Tale For China's Ambitious Chipmakers

A Cautionary Tale For China's Ambitious Chipmakers
Published on March 31, 2021 at 10:15PM
An anonymous reader shares a report: In 2019, the U.S. sanctioned two major Chinese telecom firms, temporarily cutting them off from a vital supply of semiconductor chips -- bits of silicon wafer and microscopic circuitry that help run nearly all our electronic devices. Wuhan Hongxin Semiconductor Manufacturing Co. promised a way out, toward self-reliance in the face of increasingly tough U.S. curbs on this technology. The private company once boasted on its website that it would raise a total of $20 billion to churn out 60,000 leading-edge chips a year. None of that would come to pass. Hongxin's unfinished plant in the port city of Wuhan now stands abandoned. Its founders have vanished, despite owing contractors and investors billions of yuan. The company is one of six multibillion-dollar chip projects to fail in the last two years. Their rise and fall is a cautionary tale in an industry that is flush with state cash but still scarce on expertise -- and a preview of the expensive and winding road China will have to take toward semiconductor self-sufficiency, now a national security priority.

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