Beijings big chip push goes into hyperdrive
Washington sent Beijing a signal last week when it announced a ban on US exports of key components to Chinese telecoms equipment maker ZTE. China didn’t need the message — they got it years ago. And, despite still being dependent on US imports, it looks like that will change faster than anyone expected.
As Chinese President Xi Jinping commented Wednesday during a visit to the three Gorges Dam that “China must rely on its own efforts” to innovate, the country was putting its money where his mouth is.
On Thursday it was reported that China’s state-backed semiconductor “big fund” was near to closing a US$19 billion investment round for a second fund to boost local chip makers. The news comes amid reports that the ban slapped on ZTE has prompted China’s leaders to speed up their efforts to become self-sufficient in semiconductor manufacturing.
China’s investment in chips is estimated by Credit Suisse to already total about US$140 billion.
That is according to a report in Nikkei Asian Review on Wednesday that detailed the reasons why the current leaders in the sector, Intel, Samsung and TSMC, may be given a run for their money. More than just competing with the top dogs, China’s upstarts are aiming to topple them.
“It’s totally different from decades ago when China suffered through a frustrating experience to build semiconductors out of nowhere,” Mark Li, an analyst at Bernstein Research was quoted as saying. “This time, it’s a totally different story as the country has all the right ingredients, including a massive market and strong local makers of smartphones, TVs, PCs, and automobiles … . It could be just a matter of time for them to bear fruit.”
http://www.atimes.com/article/chinas-big-chip-push-goes-into-hyperdrive/
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