Source:
https://scmp.com/economy/china-economy/article/3085230/us-semiconductor-giant-shuts-china-factory-hailed-miracle
Economy/ China Economy

US semiconductor giant shuts China factory hailed as ‘a miracle’, in blow to Beijing’s chip plans

  • US chip giant GlobalFoundries confirms it has ceased operations at its only Chinese facility, with industry experts saying the poorly-planned project was doomed to fail
  • Closure deals blow to China’s plans to move up semiconductor value chain, amid increasingly hostile tech rivalry with the United States
Californian company GlobalFoundries claimed its joint venture in China would continue, even after the only manufacturing facility was shutdown. Photo: Getty Images

US chip giant GlobalFoundries has halted operations at a joint venture factory in China, the company has confirmed, dealing a potential blow to China’s bid to own a bigger slice of the global semiconductor market.

The closure of the firm’s only China facility comes just three years after it announced plans to make chips in the mainland, and comes amid an escalating tech war with the United States.