Chinese chip maker Loongson Technology to invest US$2.1 billion in a new smart industry park in Zhejiang as China pushes for tech self-reliance
- China’s government has urged its private sector to invest in advanced technology as competition heats up with the US
- New industrial estate by Loonson will target smart devices manufacturing and R&D companies
Chinese chip maker Loongson Technology plans to invest 15 billion yuan (US$2.1 billion) for a smart industry park in China aimed at attracting smart devices manufacturers and research and development enterprises, as the country pushes for self-reliance in advanced technologies amid increasing efforts by the US to contain China’s tech development.
Located near the Yiwu international trade comprehensive reform pilot area in Jinhua city, Zhejiang province, the park will cover an area of over 5.3 square kilometres. Four research institutes and 51 companies have already reached an initial agreement with the park, including Hong Kong-listed IT service provider Digital China and Beijing-based software company Tsinghua Tongfang, according to a post from the local government on Tuesday.
Tsinghua Tongfang will set up a computer manufacturing enterprise in the park and expects to achieve an annual output of more than 10 billion yuan after going into production. Digital China plans to build an industrial innovation support platform covering east China.
Loongson is one of the few companies in China that can independently design central processing units. It was established in 2010 as a joint venture between the Chinese Academy of Sciences (CAS) and the Beijing government with the goal of commercialising the research and development of CAS-developed chips.
In July, a Loongson III chip was attached to an open letter to new students of The University of Chinese Academy of Sciences to inspire the next generation of China tech researchers.
The special gift sparked heated discussion on Chinese social media amid the US-China trade war and perceptions among Chinese that Washington is trying to contain China’s rise as a tech power.
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Since then, President Xi Jinping has on a number of occasions called for home-grown innovation and stressed the need for self-reliance in core technologies like semiconductors.
China imported US$260 billion worth of semiconductors in 2017, more than its US$162 billion imports of crude oil. US companies dominate the semiconductor industry, while domestic suppliers can only satisfy 5 per cent of China’s annual demand, according to Chinese official data.
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