Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
HSBC Shares Fall to Lowest Since 2009 As Investors Fret About Financial Crimes Report
Huawei Cuts R&D Investment and Jobs in Australia Amid Tech War
Tencent’s Navigation App Plans to Add Taxi-Hailing Feature to Compete with Baidu Maps, Alibaba-Backed Amap
JD.com Healthcare Unit Plans Hong Kong IPO
Hong Kong-Headquartered Plant-Based Food Producer Green Monday Closes $70 Million Funding Round
China-focused IDG Capital in Market For New $550m Venture Fund
Students at a Xi’an University Scream Over Quarantine Conditions
Industrial Drone-Maker Jouav Navigates Tech Tensions With IPO Plans
Trending in China: Reality TV Goes Viral for All the Wrong Reasons as Star Picks Endangered Flower
Can Baidu Make ‘Traffic Jams a Thing of The Past’ and Turn Finances Around?
Will Beijing’s Crackdown on E-Commerce Illegal Sales Save Yangtze River Wildlife?
China-focused Northern Light Looks to Raise $375m for New VC Fund
China Looks to Overhaul State Health Insurance System
Gree’s E-Commerce ‘New Retail Strategy’ Goes From Strength to Strength as $175m Worth of Products Sold in Single Event
Trending in China – Clothing Company Picks Fight With Shaolin Kung Fu Monastery
Trending in China: Medical Drama Salutes Pandemic Heroes but Stirs Sexism Debate
Trending in China – Can Universities Stop Students Wasting Food And Keep Them Happy?
Alibaba Unveils Delivery Robot to Meet ‘Last-Mile’ Demand
Alibaba Launches Palm-Sized Cloud Computer With ‘Almost Unlimited Computing Resources’
China’s National Science Academy Vows to Close Tech Gaps in 10 Years
Ambitious Nanjing Chip Project Faces Capital Strain

By Shan Leijing, Luo Guoping and Han Wei / Dec 10, 2019 04:50 AM / Business & Tech

Photo: VCG

Photo: VCG

An ambitious semiconductor project in eastern China’s Nanjing with planned investment of about $2.8 billion is stalled amid failures to attract investors, spotlighting a bursting bubble of local government forays into computer chips.

The project, led by Tacoma (Nanjing) Semiconductor Technology Co. Ltd., was launched in the capital city of Jiangsu Province in 2016 and designated a major local investment project. The plan included creation of a complex covering the entire business chain of chip production.

According to public information, the Tacoma project planned initial investment of $800 million to build production capacity of 40,000 chips a month. A second stage of investment could involve $2 billion.

But construction of the massive project has been halted since late March because of a capital crunch, according to Li Rui, chairman of Tacoma Nanjing. The Nanjing city government has invested 400 million yuan in the project, but the lack of other investors has made the project unable to continue, according to Li.

Li said he is still making efforts to seek investment from the private sector.

The troubles of Tacoma Nanjing signal a warning for other local authorities that engaged in an investment spree in chip making over the past few years. The growth of the semiconductor industry requires heavy capital investment, high technology capacity and a long time period, said one industry investor.

Many local governments have rushed into the chip-making industry without careful preparation, leading the projects to fail, said an executive at a state-backed chip company.

Contact reporter Han Wei (weihan@caixin.com)

Related: Some Chinese Semiconductor Unicorns Are Overvalued, Investor Says


Share this article
Open WeChat and scan the QR code