After Wuhan Hongxin, another Chinese chipmaker is rumored to be shutting down. According to relative news, Jinan Quanxin has stopped paying salaries and more than 400 employees have not received their April salary, and nearly half of them are Taiwanese engineers. The trader behind Chuanquanxin and Hongxin is the same person.
According to the China Semiconductor News website ijiwei’s news on May 20, Jinan Quanxin, which has an investment of 59.8 billion yuan (about 9.4 billion US dollars), has suspended salary payments since April, and its projects have been suspended one after another.
According to the report, 180 of Quanxin’s 400 employees are Taiwanese engineers who have been hired from Taiwan, with an average monthly salary of between 50,000 and 100,000 yuan.
Quanxin’s employees revealed that “the company is in a difficult situation. Since April, it has stopped paying salaries and forced employees to leave”. The contractors of other projects in the surrounding area stated that “the general contract of the project was changed many times during the construction of this project, which is very rare in the construction industry. Obviously, the project has long-term huge risks.”
The financial report data of Chinese listed companies shows that the Chinese government is heavily subsidizing the semiconductor industry. Statistics show that in 2020, China’s total subsidies to 113 semiconductor industry companies reached 10.6 billion yuan, an increase of 12 times over 10 years ago.
However, the development of China’s semiconductor industry has not gone smoothly. In addition to being blocked by the US in technology, the industry has also been exposed unfinished one after another.
In February 2021, Wuhan Hongxin, China’s 100-billion-level semiconductor industry, notified all employees to dismiss. According to the data, Wuhan Hongxin was established in November 2017. It was once famous in the industry for introducing the only ASML high-end lithography machine capable of producing 7nm chips in China. But by July 2020, the company was unveiled having a capital chain rupture problem, and the advanced lithography machine was mortgaged to the bank, and the 100 billion semiconductor project was stagnated.
According to Chinese media, Bao Enbao, the chairman of Anhui Dianchuang Electronics, who is aliased as “Cao Shan”, is also the trader of Wuhan Hongxin and Jinan Quanxin. He operated the two companies in the same way, including frequent trips to Taiwan to dig talents and attract government funds. It is expected that Quanxin will follow in Hongxin’s footsteps.
However, Bao Enbao recently responded that one of his colleagues, Jiang Shangyi, was “Cao Shan” who registered for the two projects of Hongxin and Quanxin.
Bao Enbao also stated that he had never printed or used forged business cards, and Jiang Shangyi’s joining had nothing to do with him. The two had never met. A person close to Jiang Shangyi said that Cao Shan had already left Hongxin when Jiang Shangyi joined.
According to public data, Jinan Quanxin was established at the end of January 2019. It is a semiconductor company with an investment of tens of billions. Part of the funding behind it comes from the Jinan SASAC, which has a government background. In the development process, it has also received the support of the Jinan government.
Quanxin Jinan project has a total investment of 59.8 billion yuan, and plans to build a 12-inch 12nm/7nm wafer manufacturing line. Construction of the project started in the first quarter of 2019. The site is located in Jinan Airport Economic Zone, with an area of 39 hectares. The project with a total investment of 59 billion yuan was expected to be constructed in two phases. The first phase with an investment of 23 billion yuan to build a 12-inch 12nm production line with a monthly capacity of 7,000; the second phase with an investment of 26 billion yuan to increase the monthly capacity of 23,000 12nm logic chips; and the third phase with an investment of 10 billion yuan to increase the capacity of 7nm by 10,000 pieces.
Source: dwnews