$15.6 Billion Chinese Chip Company Went Bankrupt/China launch 10-Year Plan/Global Chip Shortage

China is the world's largest semiconductor market. Currently, it relies on foreign imports for more than 80 percent of its computer chips. China recently announced a 10-year plan to invest trillions in new semiconductor factories, hoping to surpass the United States by the end of the decade.
The boom of semiconductor investment led by the Chinese government started in 2020, with more than 50,000 Chinese companies registering for semiconductor-related businesses, raising a total of RMB 250 billion in capital.
However, in just over a year, a total of six multi-billion-dollar star semiconductor projects in China have come to a halt.
Among which, the most noted case is Wuhan Hongxin Semiconductor (HSMC). In March, this star company issued a notice to lay off all its employees, turning a claimed RMB 100 billion investment into a bubble in just three years.
China Economic Weekly reports that companies with no experience, technology, nor talents are flooding into the chip industry. After acquiring capital, some have "switched" to other industries, such as construction, garments, cement, seafood and auto parts, which have no connection with the chip industry.
The 2021 edition of the IC Insights report released in January concluded that China would have to spend $150 billion over the next five years to catch up with TSMC and Samsung in terms of semiconductor technology.
As of now, TSMC and other Taiwanese companies have begun ramping up production of vital chips to address the global shortage. The global shortage of automotive chips has elevated Taiwan's strategic importance to Western governments.
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