China to curb ‘chaos’ in semiconductor industry and hold bosses accountable for risky, loss-making projects
- State planner admits that some companies have ‘blindly entered into projects’ involving computer chips, resulting in wasted resources
- National Development and Reform Commission will coordinate with financial industry to improve assessment when it comes to funding semiconductor projects
China will strengthen supervision of new entrants into its “chaotic” semiconductor industry following a number of high-profile collapses during Beijing’s push to reduce its reliance on imports by boosting investment in home-grown computer chip development and manufacturing.
Meng Wei, a spokeswoman with the National Development and Reform Commission (NDRC), said that some companies “with insufficient knowledge of integrated circuit development” have “blindly entered into projects”.
“The risks of low-level construction have appeared repeatedly, and there has even been stalled construction of individual projects and vacant factories, resulting in a waste of resources,” Meng said on Tuesday at a regular press briefing of the economic planning agency.
She added that the NDRC “also noticed that the enthusiasm for domestic investment in the integrated circuit industry is constantly rising”.
In response, she said the commission will work with other state departments to more closely supervise semiconductor projects.
[The NDRC will] strive to maintain order in industrial development in response to the current chaos in the industry
“[The NDRC will] work with relevant departments to strengthen top-level design, pay close attention to industrial planning and layout, and strive to maintain order in industrial development in response to the current chaos in the industry,” Meng said.