XMC breaks ground on $24bn factory as part of China chip-making drive

State-owned contract chipmaker XMC is investing US$24 billion in building out its semiconductor production and supply chain capabilities as part of a government push to make inroads into the strategic sector, The Wall Street Journal reported. An XMC spokesman said the money, largely from a national semiconductor fund and provincial government of Hubei, would be invested in three stages: an initial factory focused on flash-memory production, another plant producing chips, and a third phase centered on devoted facilities for suppliers. While the massive project is a first among China’s chipmakers, many analysts are skeptical the company can catch up to regional rivals in South Korea and Taiwan.