In comprehensive news, news of the dissolution of the 100-billion-yuan chip project Wuhan Hongxin has come out recently.
According to Caixin, Hongxin’s employees had received a severance notice in the corporate WeChat group on Feb. 26, asking them to submit a separation application before the end of the day on Feb. 28 and finish the separation procedures before the end of the day on March 5. Employees also revealed that the severance package did not propose any compensation measures, and Hongxin management did not come forward to explain, many employees could not accept this ending.
Founded in November 2017 with a planned investment of 128 billion yuan, the Hongxin semiconductor project was once seen as the future pillar of China’s semiconductor industry.
However, the project was rumored to have a broken capital chain last year and was fully taken over by the Wuhan government in November last year. The government’s shareholding has been rising since then, but then it quickly withdrew. The company’s employees have expressed surprise that the company has gone so quickly to dissolution.
Comprehensive reports from multiple mainland media outlets suggest that the reasons for the rapid dissolution of the Hongxin project include the lack of professionalism of the operating team, the imprudent choice of infrastructure builders, etc.
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