China’s semiconductor drive stalls in Wuhan, exposing gap in hi-tech production capabilities
- Construction on a US$20 billion state-of-the-art semiconductor manufacturing plant in Wuhan has stalled due to a lack of funding
- It’s the latest example of a Chinese chip factory hitting funding problems, underlining how far the nation has to go to boost production capabilities
At an idle construction site in western Wuhan, China’s steep climb to semiconductor independence is clear for all to see.
The partially-built factory, owned by Wuhan Hongxin Semiconductor Manufacturing Company (HSMC), was meant to be a key part of a US$20 billion investment that turned the province into a chip manufacturing hub.
But two years after it was started, construction has ground to a halt, with little evidence of progress beyond a few cranes, workers’ dormitories and steel frames jutting into the air.
The project, which the local Dongxihu district government said in July had stalled due to underfunding, is the latest example of a Chinese chip factory hitting the rocks because of poor planning or funding shortfalls.
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