More on semiconductors in China:
Number of semiconductor companies registered in China from 2000-2020. Investment was just $1Bn in 2018, grew 6x in 2019, just 1H 2020 was $8.4Bn, the highest of any sector.
Number of semiconductor companies registered in China from 2000-2020. Investment was just $1Bn in 2018, grew 6x in 2019, just 1H 2020 was $8.4Bn, the highest of any sector.
The gov issued new policies on 12/17/20. If you're working on lines 28nm or smaller your first 10 years of these lines are exempt from taxes. 65nm, 1/2 taxes yrs 6-10, 130nm, 1/2 taxes yrs 3-5.
A lot of investors and entrepreneurs think the STAR exchange is really helping the industry, as a lot of companies when recruiting can now say they are close to IPO. And talent is a huge factor.
China had no 12-inch lines (chip manufacturing production lines) in 2016. W local govt funding, it's now 20 (by 2019, including planned). In 1H 2020 alone, 21 provinces landed 140 related projects, disclosed investment of $47Bn.
A lot of these proj are ending up in 2nd tier & below cities (some 80% according to one expert), some of them are problematic, ofc. You've heard abt Hongxin fiasco, etc. Out of a (incomplete) list of 301 govt funded proj 38 on hold representing $42Bn.
That being said, a big reason for weak Chinese semi in past was lack of capital DUE TO lack of market. Thinking was: already foreign players ... why invest in domestic? But now everyone diversifying supply chains & domestic players suddenly have a market. & now there's capital.
There also used to be lack of LARGE capital for strategic parts of the supply chain. Cuz ppl only invested in design not manufacturing. OK so that's coming in, too (govt $, etc). Yes there's a bunch of dumb money, but I saw it happen w internet, ppl will learn.
But some things capital can't solve, like photolithography, pre-channel measurement equipment, high-end ion implantation machine, photoresist, that everyone now in China knows are choke point tech (literally everyone). That will take time.
So I don't have a better alternative or anything, but I didn't understand why we forced China to build a semiconductor industry when no one there was even really trying before & now everyone I know is looking at the space. If u have relevant exp, u can get $$$$ funding.
And just to wrap this up, yeah I get it, a lot of money will be wasted, but do you understand the amount of learning that will happen? I saw it with internet, so yeah semis will be a longer cycle, sure, but with so much activity, people don't stay newbs. /end
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