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One of the Chinese competitors of TSMC has lost its head and its prospects are vague
Founded at the end of 20021, the Chinese company HSMC had plans to raise at least $ 18.5 billion for its development in order to establish in China the production of not only 14-nm, but also 7-nm semiconductor components. A year and a half ago, the company was headed by the former vice president of TSMC, but he left this summer, and the financial situation of HSMC is described as very deplorable.
Image source: Caixin
Wuhan became famous throughout the world at the beginning of this year, when it housed one of the epicenters of the outbreak of coronavirus infection, although it was supposed to house HSMC, the leading enterprise for the production of semiconductor chips in China. The Nikkei Asian Review, citing Chinese colleagues from Caixin, reports that CEO Chiang Shang-yi left the company in June after having served for less than a year. An industry veteran with forty years of experience before joining HSMC, he worked at SMIC, where he moved from the post of vice president of TSMC. Obviously, Chinese manufacturers have called on the “Taiwanese Varangian” to raise the national semiconductor industry, but Caixin sources describe Jiang Shang Yi’s impressions of being at the head of HSMC as very unpleasant. Allegedly, 74-year-old veteran resigned as head of HSMC for personal reasons.
The Chinese company itself is going through a crisis period, since out of the planned $ 18.5 billion, it managed to attract at least $ 2.3 billion, and in the course of the recent transformations, HSMC was completely transferred to the ownership of the Wuhan authorities. The move itself was criticized by China’s supervisory authorities, which criticized municipal investors rushing into the abyss of the semiconductor business without the appropriate competencies and personnel.
By a court decision in November 2021, HSMC’s rights to continue using the land plot on which a semiconductor manufacturing facility was built were challenged. The whole project is very close to falling apart. HSMC will not be saved even by the fact that the company has one of the most advanced lithographic scanners ASML, which allows processing silicon wafers according to 7-nm technological standards. Most likely, in the event of HSMC’s bankruptcy, the equipment will be readily taken over by those competitors who fear the expansion of US sanctions against the Chinese semiconductor industry.
By the way, as of the end of last year, there were about 50 large companies in China involved in the production of integrated circuits, each of which attracted at least $ 4.6 billion in investments.