Chip Scam Ⅱ: Another 10 Billion USD Chip Project Fails in China

As many countries are suffering from chip shortage, there is once again bad news in the Chinese semiconductor industry. In March, we reported that Wuhan Hongxin (HSMC) went bankrupt, and now another investment, Quanxin Integrated Circuit Manufacturing Co. is in crisis. However, it is worth noting that the same person, Cao Shan, is the mastermind behind both Jinan Quanxin and Wuhan Hongxin. What kind of story could be behind this? In recent years, upon seeing the opportunities and benefits of the chip industry, something called “Chip Fever“ has emerged in China. The state government and local enterprises are investing more money than ever into the semiconductor industry. During this trend, Jinan Quanxin is a semiconductor project that was established with the support of the Jinan Municipal Government. According to local media reports in Jinan, Quanxin was promoted as a key provincial project. When it was first established, Quanxin had promised to build a 12nm chip factory wit