[Financial Channel/Comprehensive Report]In order to satisfy Xi Jinping’s chip dream, local governments in China still carry out semiconductor investment promotion, and some places directly charter flights to overseas investment promotion. As a result, the “de-sinification” of the technology industry is getting worse and worse. ; Want to attract investment in China, but because of unfinished chips, approval and supervision are becoming stricter, and there are many obstacles.
Foreign capital evacuated and Chinese companies also fled to Southeast Asia
Gu Wenjun, chief analyst of China Semiconductor Think Tank-Xinmou Research, wrote on the 9th that after three years of the epidemic, China has lost a number of foreign-funded companies, and many companies have withdrawn due to geopolitical pressure. Even if non-US foreign companies can withstand external pressure and not withdraw , It is more difficult to expand production, and it is difficult to add new production capacity. The main task of some foreign companies this year is to “migrate their production lines out of China”. Some high-quality Chinese companies with well-known terminal supply chains have also moved to Southeast Asia and South America along with foreign companies.
The article bluntly stated that once Dell and Apple move, huge upstream and downstream enterprises will be forced to withdraw from China. Coupled with US tariff sanctions and rising production costs in China, many Chinese enterprises have also gone to Vietnam and India to build factories. “A certain” well-known high-tech company, with an output value of nearly 20 billion yuan and nearly 50,000 employees in previous years, began to move out this year, and the number of employees was reduced to less than 20,000.
“The old ones have to go, and the new ones don’t come.” It is becoming more and more difficult for China to attract foreign investment. The article revealed that many local government investment promotion teams had no choice but to charter flights abroad to attract investment, and some fields may have made gains, “but it is difficult to do anything in the semiconductor field.”
If you want to flex your muscles in China, you will also encounter resistance, especially in China, where the unfinished chips are thundering, and the approval and supervision are tightened. It is not easy to attract investment. Recently, in a hotel near a major Chinese semiconductor factory, different local government investment promotion teams can be seen everywhere, queuing up to visit the company from morning till night, showing that semiconductor investment is difficult, and local governments are increasingly challenged.
China’s “chip” chaos, local governments poach corners from each other
The article also exposed the chaos of China’s semiconductor industry. Because the local government has limited knowledge of the semiconductor industry and the industry is mixed, at this time, “either they will be bid up the price, or they will be deceived.” Enterprises with ordinary qualifications dare to open their mouths and require a lot of support from the local government before they are willing to do so. Enterprises with good qualifications simply do nothing, only accepting subsidies from the local government and refusing local shareholding.
There is also the phenomenon of local governments poaching corners from each other. The article stated that with the weakening of the semiconductor industry and the low willingness of enterprises to expand, the first-tier cities in China, which had been stable before, began to actively visit their homes to attract investment, so the phenomenon of “I will go to your home to dig your production capacity” appeared. , As a result, many local governments failed to recruit new enterprises. When they went home, they found that their own enterprises had been poached.
The article believes that under the economic downturn and shrinking income, local governments in China still need to face the reality of semiconductor investment, even if they cut wages while trying to attract investment.
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