A Chinese company that launched a $2.8 billion government-backed semiconductor project four years ago is going bankrupt after it failed to attract investors even as China tries to become self-sufficient in computer chips, reported Caixin.
Tacoma (Nanjing) Semiconductor Technology Co. Ltd.was ordered by Nanjing Intermediate People’s Court of Jiangsu Province to undergo compulsory liquidation and bankruptcy, according to a national enterprise bankruptcy information website run by the Supreme People’s Court.
The project, supported by the Nanjing Economic and Technology Development Zone, was launched in 2016 and designated a major local investment project. The plan included creation of an 8-inch wafer fabrication plant and supporting producers covering the entire business chain of chip production.
The Nanjing project was part of China’s ambitious plan to produce 40% of the semiconductors it uses by 2020 and 70% by 2025. The plan resulted in massive investment by the central government and spurred an enthusiastic response from private equity and venture capital investors.