Xi Jinping chip great leap forward Wuhan Hongxin resumed work into a bubble, staff all laid off

According to Caixin.com and other Chinese media reports, Wuhan Hongxin Semiconductor Manufacturing Co. As there is no hope of resumption of work, Wuhan Hongxin has notified all employees on the 26th that they must apply to leave before the end of the day on the 28th.

The media obtained the aforementioned notice of Wuhan Hongxin said, “combined with the company’s current situation, the company has no plans to resume work and production, the company has decided to ask all employees to apply for separation before the close of business on February 28, 2021, and to complete the separation procedures before the close of business on March 5, 2021; vacationers can apply online.”

It is still unknown whether all employees who were laid off will be compensated. Wuhan Hongxin an employee told Caixin, “the separation program does not give any supporting compensation, Wuhan Hongxin senior management has not given any explanation.”

The employee also said, “I did not expect Wuhan Hongxin will die so quickly, before the internal rumors have been said that Xiaomi, huawei and other companies or to take over. Some employees want N+1 compensation (meaning seniority plus one month’s salary severance pay), but now they are also no longer available.”

However, Caixin points out that despite the one-year halt in Wuhan Hongxin’s investment process, employees have been paid on Time, and on the 20th of this month, employees also got their full salaries for the month.

Wuhan Hongxin was established in November 2017, claiming that it planned to invest RMB 128 billion (about US$19.87 billion) in logic chips and advanced wafer packaging for 14nm, 7nm and below processes, and at that time also recruited TSMC‘s former chief operating officer Jiang Shangyi as chief executive officer. Wuhan Hongxin was also listed as a key provincial construction project by the Hubei Provincial Government in 2018 and 2019.

But Jiang Shangyi issued a statement through his lawyer last November, stating that he had resigned from all positions such as director, general manager and chief executive officer (CEO) of Wuhan Hongxin in June 2020.

“A detailed report published by “36 Krypton” at the end of last month alleged that Wuhan Hongxin was simply a “100 billion chip scam.

Caixin pointed out that since November last year, Wuhan Hongxin’s shareholding has changed several times, with the Wuhan East-West Lake District Government increasing its shareholding from 10% to 100%. After the local government took over, it had planned to complete the follow-up infrastructure construction of the plant in June this year, and simultaneous investment promotion, the government withdrew after finding investors.

But “in the face of a land formalities are not complete, the plant is not built and the lack of kernel technology team of the project, take over really need courage”. Caixin said, after the dissolution of all employees, Wuhan East and West Lake District Government next step how to clean up the mess is still a matter of concern to the market.