How did China’s ‘chip industry’ burn due to corruption? The project that had given the world a fistful failed. China’s chip industry rots with corruption, top executive fails big project to Xi Jinping

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How did massive corruption happen in the chip industry?

In the near future, the chip that will be the king of the semiconductor manufacturing world will dominate the world and the US has budgeted a new bill of about 260 billion dollars to increase its domestic semiconductor production. But something different has happened in China. Several arrests have been made involving top officials of chip makers on charges of defrauding China’s ‘National Investment Fund’. That includes Zhao Weiguo, the former chairman of Chinese technology and semiconductor maker Tsinghua Unigroup, who was arrested last month. They have been accused by the investigating officers of allegedly being involved in irregular procurement activities. Meanwhile, China’s Industry and Information Technology Minister Xiao Yaqing has been arrested on suspicion of violating Communist Party discipline and laws. It is alleged that they are also involved in the corruption of this fund.

Turmoil in China's chip industry

Turmoil in China’s chip industry

China’s chip industry has been rocked since the arrest of several other executives at the National Integrated Circuit Industry Investment Fund, also known as the Big Fund, including the former chairman of Tsinghua Unigroup. Zhao Weiguo, the former chairman of Tsinghua Unigroup, has been dismissed from his post. Along with this, while issuing a statement on behalf of many Chinese companies, it has been said that the arrest of Zhao Weiguo, the former chairman of Xinhua Unigroup, will not affect their operations. Bloomberg reported that senior Chinese officials complained last month that the government has invested billions of dollars in the semiconductor industry over the past decade, but has yet to achieve the expected results. Also, over the past year and a half, the Chinese government has imposed very strict guidelines on the e-commerce industry, which has also hurt the shares of Chinese giants like Alibaba and Tencent. The guidelines brought in for the e-commerce industry were also described as a campaign against corruption, which has badly affected Jack Ma’s company. At the same time, Beijing has now launched a new anti-corruption campaign aimed at reforming the semiconductor industry.

'Self-Reliance and Self-Improvement'

‘Self-Reliance and Self-Improvement’

When Chinese President Xi Jinping visited Wuhan-based laser-cutting firm Huagong Tech Co., Ltd. on June 28, he acknowledged that “optoelectronics is a strategic high-tech industry with constant innovation and changing technology.” Xi Jinping said that, “China has the conditions to lead to achieve success in the industry”. He unequivocally stated that, whatever the problems are in this sector, it is important to overcome them with leading technologies. At the same time, he clearly told the Chinese authorities to stop making excuses and improve themselves. Xi Jinping was very strict during this time and since then corruption in the region has been clamped down and dozens of arrests have been made.

Ban and suppress

Ban and suppress

Meanwhile, Xi Jinping also targeted the US in gestures and gestures and said that other countries are also behind the disappearance of important technologies from China and the strangulation of China’s aspirations in the last two years. So now it is being discussed a lot among Chinese citizens. Let us tell you that in May 2019, the US blacklisted the Chinese tech company Huawei Technology on charges of espionage, after which in September last year, Huawei said that US sanctions had cost its telecommunications businesses 30 billion US dollars. is . After which the Chinese authorities started using the Mandarin word “ka bozhi”, which means ‘to strangle’. At the same time, many experts say that this company has stolen a lot of technology from America and it is not possible to do this after the ban, so China has suffered a lot.

America is cracking down on China

America is cracking down on China

Not only did the US ban several Chinese companies on charges of espionage, but in early 2020 the US also banned the Netherlands from exporting its extreme ultraviolet (EUV) lithography equipment to China, except for China, 22 Ability to make high quality chips. -Between nanometers (nm) and 7-nm are severely affected. Smaller nodes can increase transistor density on a chip, achieving faster computation and lower power consumption. Also, last month, media reports said the Biden administration is now also seeking to ban Chinese companies from acquiring deep ultraviolet (DUV) lithography equipment, which is between 28-nm and 90-nm. Use chips. And if America does, China’s chip industry will be brought to its knees.

Ban on companies operating in China

Ban on companies operating in China

US media reports also said the US is now considering banning China-based memory chip makers from acquiring US equipment, which can make NAND chips with more than 128 layers. Last month, Micron began mass production of its 232-layer stacked NAND chips in Singapore. A recent 163.com news report stated that senior Chinese officials reviewed the development of the national chip sector at a July meeting, which found that most Chinese projects and investments to expand chip technology have failed. And the biggest reason behind this is deterrence. Piracy of American technology.

China spent 100 billion dollars

China spent 100 billion dollars

Bloomberg cited unnamed sources as saying that many Chinese officials are upset that Xi Jinping’s government has spent more than $100 billion over the past decade to boost the chip sector, but even then chip The industry has not been successful. Also, since the publication of this report, the arrest process of Zhao Weiguo of Xinhua Unigroup and Xiao Yaqing of MIIT has accelerated. At the same time, Caixin said that Diao Shijing, former co-chairman of Unigroup, Ding Wenwu, general manager of Big Fund, and Li Luyuan, president of Unigroup subsidiary Beijing Uni Science and Technology Service Group Ltd. has been arrested China’s Communist Party’s anti-corruption body, the Central Commission for Disciplinary Inspection (CCDI), said on August 9 that two former executives and one current executive of China-IC Capital Ltd., which manages a large fund, The employee is being investigated. . They included former director Du Yang, deputy manager Yang Zhengfan and former manager Liu Yang.

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