Home Technology China invests $290 billion in chip industry in two years

China invests $290 billion in chip industry in two years

China invests $290 billion in chip industry in two years

In recent years, the Chinese authorities have encouraged the production of components
(photo: CC0 Public Domain)

The passage of the so-called Chip Act in the US was accompanied by jubilation at many political levels, but the manufacturers themselves realized that the subsidies granted to build enterprises, in the amount of 39 billion dollars over a period of ten years, were not enough to recover the previous country positions in that market. At the same time, in China from 2021 to 2022 inclusive, more than $290 billion was spent to finance the semiconductor industry.

In the previous two years, 742 investment projects were implemented in China in 25 provinces of the country, and about a third of the said amount of 290.8 billion dollars was directed to the purchase of chip manufacturing equipment and materials, Taiwanese source Digitimes reported, citing of JW Consulting survey data.

The number of investment projects implemented in China’s semiconductor industry is increasing. If in 2021 there were 142 new and 187 ongoing projects, then in 2022 18 more projects were added in the first of the directions, and in the second an increase to 352 was observed.

Geographically, the main projects in China are concentrated in Anhui and Guangdong provinces. In the first period, 304 investment projects worth $59 billion were implemented, and in the second – 66 projects worth $47 billion.

Overall, in the Chinese semiconductor industry, 30% of the projects in the past two years are related to the production of materials (176 items) or chip equipment (56 projects). In the first place in terms of popularity in the materials segment are projects related to the production of displays, and in second place – with the production of chips and devices.

In comparison, between 2016 and 2020, China completed only 40 projects in the materials segment and only 7 projects in semiconductor equipment.

The authors of the study characterize China’s current investment policy as more balanced and aimed at the development of entire industrial clusters. The focus of investment is gradually shifting from finished products to components and production equipment.

In addition, Chinese authorities are encouraging cooperation in the semiconductor industry, although earlier investment projects were implemented separately.


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