The semiconductor manufacturing trade is a cutthroat competitors largely performed between established forces. One want solely look to AMD’s resolution to spin-off its manufacturing arm to create Global Foundries to see how even a grand firm can hit manufacturing points (although not solely manufacturing points hit AMD at the moment, clearly) can threaten to shutter operations. Intel’s current points with 10 nm and seven nm fabrication additionally come to thoughts. as such, it comes at no nice shock that Chinese firm Wuhan Hongxin Semiconductor Manufacturing Company (HSMC) has reportedly run out of money. What’s somewhat extra shocking is how this firm was truly backed by the Chinese authorities, and but it nonetheless failed – proof of the semiconductor trade’s technical and funding liquidity necessities.
HSMC again in 2017 introduced plans to carry on-line a producing plant within the central Chinese province of Hubei. The purpose was to fabricate 14 nm and seven nm chips as early as 2019/2020, funded by a $20 billion mortgage and quite a few funding rounds. HSMC’s ex-CEO Chiang Shang-yi (who beforehand served as former head of R&D at TSMC) mentioned to EETimes that “Investors ran short of cash.” And that was it for the corporate’s aspirations. The firm has now been absorbed by the municipal authorities within the central Chinese province of Hubei, and what is going to come of that (and the corporate’s future) stay unsure.
