China's Semiconductor Industry Boosted by Collaborative Funding System

China's semiconductor sector is being significantly advanced through a collaborative framework involving the central government, local authorities, state-owned financial institutions, and private enterprises. This system facilitates fundraising, factory construction, and infrastructure development, as reported by South Korea's "JoongAng Ilbo." The China National Integrated Circuit Industry Investment Fund has mobilized substantial resources across three phases, totaling 686.7 billion RMB, with investments directed towards major companies such as Semiconductor Manufacturing International Corporation (SMIC), Hua Hong Semiconductor, and Yangtze Memory Technologies.

Changxin Memory, a company established a decade ago, has achieved a notable position, ranking fourth in global DRAM market share despite incurring a net loss of 21.13 billion RMB over the past three years. During this period, the company invested 185.2 billion RMB in research and development and equipment, with approximately 80% of the funding sourced from Hefei's state-owned capital.

In contrast, South Korea's semiconductor giants, Samsung Electronics and SK Hynix, are actively involved in investments, job creation, and technological advancements. The South Korean government aims to guide 622 trillion KRW in private investments by 2047, alongside providing 17 trillion KRW in low-interest loans and 1.1 trillion KRW in semiconductor ecosystem funds. However, industry leaders, including Park Kyung-soo from the Korea Semiconductor Industry Association, emphasize the need for sustained investment and long-term policy support to remain competitive against China's growing semiconductor capabilities.

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Source: KLEA News