Tech war: China’s Guangdong province doubles down on semiconductor expansion with 40 new projects worth US$74 billion, says top official

China’s Guangdong province is doubling down on expanding its local semiconductor industry to meet growing demand for chips from the region’s carmakers and electronics companies, according to a high-ranking local government official.

Guangdong vice-governor Wang Xi told the annual China IC Manufacturing Conference on Tuesday that about 40 major semiconductor projects were under construction or being planned in the southern Chinese province, with the combined investments worth more than 500 billion yuan (US$74 billion), according to a transcript provided by the conference’s organiser.

“The integrated circuit industry provides essential support for next-generation electronics, smart home devices, cars and other industrial clusters [worth] up to trillions of yuan, which altogether form the backbone of Guangdong’s manufacturing sector,” Wang said.

Guangdong’s chip industry development is part of Beijing’s national drive for semiconductor self-sufficiency, despite restrictions imposed by the US on China’s access to the most advanced chip technologies and production equipment.

Considered a major electronics manufacturing hub, Guangdong annually imports about 1 trillion yuan worth of semiconductors, or about a third of the country’s total, Wang said. China imported US$415.6 billion worth of integrated circuits in 2022, a fall of 3.9 per cent, according to official Chinese customs data.