China has a problem. Another large manufacturer went bankrupt

It’s no secret that China They are trying hard to develop the domestic semiconductor production market. All this to become independent from Western technologies. Especially when United States and partner countries keep imposing new sanctions, including: for EUV machines from ASML.

Despite billions of dollars of investment, the effects are mediocre

Thus, both state-owned companies and individual Chinese regions (Jiangsu, Anhui, Zhejiang, Shandong, Shanghai) they heavily subsidize companies related to the production of semiconductors. However, it seems that money alone won’t do any good without qualified specialists and proper management.

China Times points out that We may soon witness another Chinese crisis. This is evidenced by the bankruptcy of a large manufacturer, Shanghai Wusheng Semiconductor. We are talking about a company founded in 2021 in which… over $2.48 billion was invested. It dealt with drivers for OLED displays, microcontrollers and CMOS image sensors, i.e. quite simple systems.

This is a consequence of the earlier financial problems of Wu Sheng Electronics Technology Group and Nanjing Wusheng Semiconductor Technology. Despite investment worth USD 3 billion in July 2020 and a target of monthly production of 40,000 300 mm wafers per month, no progress has been made. The first of the mentioned entities announced bankruptcy in 2023.

Since the beginning of 2023, as many as 23 Chinese companies have withdrawn their plans to go public, which highlights investors’ cautious approach to this sector. Experts predict that higher listing standards will lead to more companies leaving the market due to financial challenges and difficulties in securing investments. Just in 2023, as many as 10,900 Chinese companies will be closed related to semiconductors.