Tens Of Thousands Of Chinese Chip Companies Closed Down; Severe Convective Weather Affects China

Industry major reshuffle, tens of thousands of Chinese chip companies close down. Chinese universities report loss of 27 cadres in less than four months. Severe convective weather affects 10 provinces, Jiangxi faces level 12 winds comparable to typhoon landfall. From Hu Yaobang to Li Keqiang, analysis, the death of major figures shakes the CCP's political landscape. Human rights report, CCP's guilt should be punished. It's all covered in today's China Truths. Industry major reshuffle, tens of thousands of Chinese chip companies close down. After years of high salaries luring talents, IPOs raising funds, and the craze of creating unicorn companies, layoffs, closures, and liquidations have become the new norm in China's semiconductor industry in recent years. Statistics show that over 10,000 chip companies closed down or disappeared last year, and this industry-wide shakeup is still ongoing. The Chinese tech-focused WeChat public account Xinqiao IC published an article on the 16th of this month, reviewing the Chinese semiconductor industry's swift transition from a booming to a chilling cold winter over the past few years, revealing various chaos within the semiconductor industry. According to the report, the first to feel the chill from the massive shakeup of China's semiconductor industry were the industry's headhunters. Senior headhunter Zhao Qing mentioned recently that she has left the chip industry and is seeking new employment opportunities. Throughout last year, there was a constant stream of news about layoffs, dissolutions, closures, and cancellations within China's chip industry, with many chip companies quietly disappearing from public view. Data released by Kachacha shows that in 2023 alone, 10,900 Chinese chip companies were cancelled, which means nearly 30 chip companies disappeared each day on average. The article cites the head of the integrated circuit design at the China Semiconductor Industry Association and Tsinghua University professor Wei Xiaojun, who stated that in 2023, there were 3,243 chip design companies in China, with more than half of them having an annual revenue of less than 10 million yuan, approximately US$1.4 million. If these companies lack the ability to generate their own capital, they will likely struggle to survive this cold winter. Zhong Lin, founder of Sanwa Micro, recalled the past years when domestic chip companies emerged en masse driven by policies. Many investors, unfamiliar with the industry's specifics, chose investment projects based on general internet investment strategies, focusing on those promising rapid IPOs without substantial experience from major international chip firms. Many chip companies were initiated by investors who then recruited returnees or expert professors to start the businesses. These founders often lacked first-hand engineering experience, which meant that despite their efforts, the companies primarily ended up recreating existing products from major firms, leading to a market filled with homogenized products that lacked true innovation. In the chip entrepreneurship boom in the past few years, another chaos was that the industry threshold was pushed to the lowest level. Among them, chip microelectronics, which is engaged in power semiconductor chips and devices, is the most typical representative. The prospectus of the company at the time showed that there were 793 employees in the company, of which only 16 were undergraduates, accounting for 2.02% of the total number of employees, while other employees had lower academic qualifications than this level. In March 2023, the company withdrew its listing application and terminated its GEM IPO. As the market cooled, the initial enthusiasm masked many underlying issues, but as companies failed to sustain profits or secure further financing, they faced inevitable bankruptcy and liquidation. Zhong Lin pointed out a significant issue—many local companies were producing competitive but economically unviable chips, resulting in low prices and a lack of interest from distributors, creating a vicious cycle of market failure. Chen Ming, a five-year veteran of the industry, observed that many companies that once competed fiercely for talent are now cutting wages and laying off staff. Discussions within the industry frequently focus on layoff ratios and new announcements of cutbacks. The report also mentioned companies that exited the market due to engaging in subsidy fraud or financing scams. Initially, there was a surplus of chip design firms, many of which barely managed to produce viable products, much less high-quality smart chips. The China Semiconductor Industry Association noted that in 2023, while there were 3,451 chip design firms, the majority were involved in producing low-to-mid-end chips, leading to intense competition and little innovation. This lack of research and development has precipitated the industry's overall decline. Chinese universities report loss of 27 cadres in less than four months. In less than four months this year, at least 27 university cadres in China have died of illness. All were members of the CCP. Four were under the age of 65, and the youngest was only 54. Xie Xiongda, the party chief at Harbin Institute of Technology's School of Materials Science and Engineering, passed away on April 12 at 61 years old. He served as party chief of the School of Automotive Engineering, the School of Information Science and Engineering, and finally, the School of Materials Science and Engineering. Wu Jialian, who was the party chief at Guangdong Vocational College of Literature and Arts, died on February 27 in Guangzhou at the age of 58. She had a long career in publishing and propaganda, particularly in literature and art, and held significant roles within the Guangdong Propaganda Department. Tao Jertu, the director and deputy party chief of the School of Journalism and Communication at Inner Mongolian Normal University, passed away on February 21 at 54 years old. He was an expert in several fields including intercultural and international communication. Additionally, notable deaths include Jin Cheng, 82, former party chief at Nantung Institute of Technology, Lin Guangjun, 87, former party chief at Jiangsu Normal University, and Wang Xiaoyu, 95, former party chief at Sichuan Agricultural University, all of whom died due to illness. Zhong Binglin, former president of Beijing Normal University and a significant figure in higher education, died on April 7 at 73 years old. Gong Zhenban, a former vice president of Shanghai University and robotics expert, passed away on February 20 at 82 years old. There were periods of intense rainfall, with the maximum hourly rainfall locally exceeding 70 millimeters. The main impact of the severe convection will be during the day and night of April 16. Specifically in Jiangxi, the provincial meteorological observatory continues to issue multiple warnings including for torrential rain, strong winds, and thunderstorms, all still in effect. On the morning of April 16, around 10.20 a.m., a level 12 thunderstorm with winds of 35.9 meters per second occurred in Dongxiang, Fuzhou, breaking the local record for maximum gust speed of 30 meters per second. Such wind speeds are rare inland and are comparable to those of a typhoon making landfall. The Jiangxi Meteorological Observatory advises the public to be cautious of short-term heavy rainfall, thunderstorms, and hail. In Chongqing, six severe convective weather alerts were issued early on April 16. Many areas will experience thunderstorms with winds above level 8, accompanied by lightning, short-term heavy rainfall, and local hail. In Chongqing, 86 rain stations across 13 districts and counties reported torrential rain, and parts of 28 districts and counties experienced gusty winds above level 8, with the maximum reaching level 12. Videos posted by locals show the strong winds flipping roofs and air conditioning units falling to the ground. Many citizens said frankly that they were too scared to fall asleep at night. In parts of Sichuan, such as Yibin and Luzhou, thunderstorms occurred on the night of April 15, accompanied by local hail and gusty winds between levels 7 to 9, reaching above level 10 in some areas. From April 16 to 19, the Sichuan basin will experience a significant cooling and rainfall process, with the average temperature dropping by 6 to 8 degrees Celsius. From the evening of the 17th to the 19th, most of the basin will have moderate to heavy rain, with torrential rain in parts of the northeast and south. In Guangdong, on April 16, the Meteorological Department reported that the northern cities and counties of northern Guangdong and northern Zhouqing would experience cloudy to overcast weather, turning to moderate to strong thunderstorms, accompanied by thunderstorm winds between levels 7 to 10, short-term heavy rainfall, and small hail. Other cities and counties will be mostly cloudy, with local showers and light fog in the mornings and evenings in northern Guangdong and eastern Guangdong. Daytime temperatures will generally range between 29 degrees Celsius and 32 degrees Celsius, with areas on the Laizhou Peninsula reaching 32 degrees Celsius to 34 degrees Celsius. From Hu Yaobang to Li Keqiang, analysis the death of major figures shakes the CCP's political landscape. April 15 marks the 35th anniversary of the death of former CCP General Secretary Hu Yaobang, with an atmosphere of tension in Xiongnanhai and tight control over public discourse. On April 12, Yan Huai, a retired senior official from the CCP's organization department, posted an online article commemorating Hu Yaobang, claiming his greatest achievement was liberating a hundred million political pariahs. However, the article was quickly deleted, and his WeChat account was silenced for two weeks. Hu Yaobang fell from power in January 1987 during his tenure as general secretary and passed away on April 15, 1989. Subsequent memorial events in Beijing evolved into a democracy movement, culminating in the June 4 Tiananmen Square Massacre, which had a profound impact on the CCP's regime. Chen Kuide, editor-in-chief of the online magazine China Overview told Voice of America that the deaths of significant figures loosen a political choke point in China, allowing the rapid release of public discontent, thus facilitating change. Several important deaths have led to social movements and awakenings. He explained, due to a significant aspect of Chinese cultural tradition, which highly respects the deceased, people generally hold a certain reverence for the dead and believe they should not be desecrated. Thus, during commemorations, various suppressive actions tend to ease, allowing public emotions to burst forth during these historical moments. For instance, following the death of former Premier Zhou Enlai in 1976, the public voiced opposition to the Gang of Four and supported Deng Xiaoping. The same year, the death of former party leader Mao Zedong marked China's liberation from 27 years of disastrous policies, leading to the era of reform and opening up. The democracy movement sparked by Hu Yaobang's death in 1989 was unprecedented. In October 2023, former Premier Li Keqiang suddenly died at 68 in Shanghai, officially attributed to heart disease, a rare occurrence among CCP leaders, sparking various speculations. Regarded as a weak premier, Li was oppressed by CCP leader Xi Jinping during his decade in office. Akio Yaida, Taipei bureau chief for Sanki Shimbun, suggested on Facebook that whether Li was murdered or died of illness, Xi Jinping would be unable to clear his name. Li's death triggered a wave of public mourning, allowing citizens to express their sympathy for him and their anger towards the CCP's tyranny. Although authorities closely monitored the situation, they did not prevent public mourning. However, the memorial service for Li and subsequent Qingming Festival commemorations the following year were restricted. Yakogawa, an expert on China issues, in an interview with Epoch Times, stated that Li Keqiang's death was not natural, citing the advanced healthcare available to high-ranking CCP officials as evidence that such an occurrence was implausible. He suggested that the motivation for eliminating Li came from the current ruling powers, not specifically Jiang's or Tuan's factions. Yakogawa highlighted that Xi Jinping's faction had motives to act against Li, given the threatening rise of Xi-out, Li-up rhetoric. He remarked that Li's death was a severe blow to Xi and the CCP, impacting the morale of the entire officialdom and contributing to a sense of vulnerability among officials. Yakogawa concluded that the CCP officialdom was already largely inactive, and the repercussions of Li's death could catalyze significant political changes in the future. Following Li's death, analysts predicted a perilous political landscape for the CCP in 2024, fraught with crises, with Xi Jinping facing potential upheavals. Commentator Zhong Yuan wrote in Epoch Times on Jan. 4 that Sears predicted Xi Jinping would fall seriously ill in 2024, with similar prophecies in Tui Bei Tu and Iron Man book, and Xi's close associates were trying to help him counter these prophecies. Commentator Yuan Bin reviewed those waiting for Xi's mishap, including the biggest threat from Jiang's faction, the deeply humiliated Tuan faction, the Red Second Generation seeking to preserve their vested interests, the resentful mid- and lower-level CCP officials, and the scheming Xi loyalists, all hoping for Xi's downfall to seize power during the chaos. Yuan Bin stated that various anti-communists and ordinary citizens persecuted under Xi Jinping's rule are undoubtedly waiting for his misfortune. Given such circumstances, how stable can Xi Jinping's position be? Author Liu Fang previously wrote online that all layers of Chinese society are waiting for a change in China, including the public, officials, even the top echelons of the CCP, and even people abroad. What exactly are they waiting for? It is an open secret. Various signs indicate that a tipping point has been reached, and such a regime cannot last long. Human Rights Report – CCP's Guilt Should Be Punished On April 15, the U.S.-based organization Chinese Human Rights Defenders, CHRD, released a new investigative report revealing the CCP's brutal methods of guilt by association against human rights defenders and calling for severe punishment of the CCP officials specifically involved in such abuses. Titled If I Disobey, My Family Will Suffer – Implicated Persecution of Families of Human Rights Defenders in China, 2023, the report details the CCP's intensification of repression and persecution of civil society. Although the report focuses on cases from 2023, it highlights that the CCP has continuously used these tactics to violate the fundamental human rights of Chinese citizens for decades, causing tremendous harm to the families of activists. Victims attempting to expose the CCP's misdeeds often face harsher harassment, violence, and baseless legal persecution from the CCP police. The report states that the persecution of family members of human rights defenders by the Chinese Communist Party is a state act, and therefore no perpetrators have been investigated or prosecuted for such abuses. The report lists the CCP's despicable methods of involvement, including persecuting the children of rights defenders, including infants, by incarcerating them in psychiatric hospitals or orphanages, prohibiting school-age children from attending school, traveling abroad, advancing their education, studying overseas, or finding employment. It also includes criminal actions taken against the family members of human rights defenders, such as detention, arrest, and imprisonment, denying family members the right to see detained or imprisoned activists, coercing them to cooperate, CCP police obstructing communication between family members and activists abroad, and CCP officials using national security as a pretext to forcibly separate families, prevent exits from the country, or detain activists and arrest and deport activists trying to reunite with family abroad. CHRD Executive Director Xiao Lei stated, The Chinese authorities are persecuting human rights defenders, rights lawyers, and their families, including young children, in ways that violate both CCP's own laws and international law. The report cites many well-known cases, such as the persecution of human rights lawyers Wang Jian, Jiang Tianyong, Wang Yu, and their families, as well as the mother of An Itingyu, founder of vaccine babies Hong Yifanmei, who advocates for victims of China's fake vaccine scandal, and the family of poet Wang Zhan. The report also collected testimonies from more than a dozen people who were implicated, but their identities were not disclosed to protect them from official retaliation by the CCP. CHRD Research Consultant Sophie Richardson stated, This type of persecution has caused tremendous pain and suffering to completely innocent people across the country, including young children and expatriate communities outside China. The perpetrators must be held accountable. The report points out that the CCP authorities' illegal-linked persecution should be subject to scrutiny, and its blatant and illegal violations of human rights have sounded the alarm to the international community. The report calls on the United Nations' human rights mechanisms and other governments to seek justice for the victims and punish those CCP officials specifically involved in the persecution. Don't forget to leave a comment in the section below to share your opinions on today's topic with us. Make sure to like and subscribe to see more interesting topics from China Truths!