Chip Scam Ⅱ: Another 10 Billion USD Chip Project Fails in China | QXIC | HSMC | TSMC | Semiconductor

As many countries are suffering from chip shortage, there is once again bad news in the Chinese semiconductor industry. In March, we reported that Wuhan Hongxin (HSMC) went bankrupt, and now another 59.8-billion-yuan investment, Quanxin Integrated Circuit Manufacturing Co. is in crisis. However, it is worth noting that the same person, Cao Shan, is the mastermind behind both Jinan Quanxin and Wuhan Hongxin. What kind of story could be behind this?
In recent years, upon seeing the opportunities and benefits of the chip industry, something called "Chip Fever" has emerged in China. The state government and local enterprises are investing more money than ever into the semiconductor industry. During this trend, Jinan Quanxin is a semiconductor project that was established with the support of the Jinan Municipal Government.
According to local media reports in Jinan, Quanxin was promoted as a key provincial project. When it was first established, Quanxin had promised to build a 12nm chip factory with an annual production capacity of 480,000 chips and 2,400 pieces of Reticle Mask, which is basically the peak of technology production in China.
The factory, which has been under construction for more than two years, has only just completed its foundation piling.
Recently, mainland media reported that Quanxin Engineering has been shut down and plans to lay off its employees. The 1.7-billion-yuan worth of equipment that Quanxin has ordered and paid a deposit for has now become a headache for the government of Jinan.
The key person who helped Cao Shan to fulfill his ambition, Shang-Yi Chiang, was once the most valued technology expert by TSMC founder Morris Chang, and was known as the global semiconductor industry's most popular figure. Hongxin not only deceived the veteran chip engineer, but also poached more than 100 experienced engineers and managers from TSMC and other Taiwan semiconductor companies at three or four times the salary.
Cao Shan is not the only “Chip Deceiver” in China. The Voice of America reported last October that, within one year, six semiconductor projects in China worth $10 billion or more have been shut down. Behind the shutdowns of these big projects is the semiconductor craze of local governments and associated companies.
The other reason is that China’s "Whole Nation system" is no longer effective. The so-called "Whole Nation system" is a manifestation of communism, which means an order by the government should be implemented by the whole nation at all costs.
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