China is seeking to stop unqualified companies from entering the semiconductor industry, as the collapse of a number of high-profile chipmakers illustrate how difficult it will be for the nation to build strong domestic manufacturers in the face of US-China trade tensions putting its supply at risk, reported Caixin.
Many companies have “blindly taken on projects” despite having no experience, technology or workers skilled in integrated circuit development, Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC) said during a press briefing on Monday.
There have been repeated examples of low-quality work on projects that require great technological sophistication, she added, noting that “stalled projects and vacant manufacturing plants have wasted huge amounts of resources.”
The NDRC, China’s economic planning agency, said it will hold the heads of such projects accountable. Meng added that the NDRC will strengthen supervision and guidance on essential integrated circuit projects, and work with other ministries to improve industrial planning as well as the industry’s geographic layout, concentrating major companies in designated regions. It also plans to cooperate with financial institutions to reduce risks for investors, Meng said.