After Wuhan Hongxin Semiconductor exploded into a fraudulent stall, recently Chinese media Jiwei.com reported that the nearly 60 billion RMB investment in Quanxin IC manufacturing company is rotting again.
Wuhan Hongxin Semiconductor Manufacturing Company, known as a $100 billion semiconductor scam in mainland China, was taken over by the government last year after serious financial problems broke out, and the company laid off its employees at the end of February this year. The latest news pointed out that Wuhan Hongxin renamed Wuhan New Industrial Modern Manufacturing Company, continue to engage in the semiconductor industry, but the contractor reported delinquent payments, the biggest problem is still debt, whether it can really “shell resurrection”, the outside world seems to be a long way off.
Wuhan Hongxin shell for resurrection?
Chinese and foreign media have successively revealed that the “Hongxin” promoter Cao Shan, since 2018 has set up Zhuhai “Yi core”, “cloud core”, Hubei “Tianxin “and Jinan “Quanxin”. Quanxin Integrated Circuit Manufacturing (QICM) is listed as a key project in Shandong, where state capital has smashed more than RMB 500 million. The total investment of Quanxin is 59.8 billion RMB, but as of March this year, one of the promoters and shareholders of Quanxin, Yixin, which is controlled by Cao Shan, has contributed “0”, the same as Hongxin. As of March this year, “Quanxin” promoter and one of the shareholders, “Yixin” controlled by Cao Shan, is “0”, the same as Hongxin.
Wuhan Hongxin semiconductor outbreak of fraud to close, the latest report rumored “resurrection of the shell”? (Wuhan Hongxin official website)
The Chinese website Jiwei.com reported on the 20th that Quanxin employee Li Ming (a pseudonym) told the network: “The company’s situation has become increasingly difficult, and since last (April) has begun to stop paying wages, forcing employees to leave. The person in charge of a project around the Quanxin plant also told the network, “During the replacement of the general engineering contractor, there were several instances of arrears of migrant workers’ wages.”
Employees exploded the company owes wages forced to leave Quanxin company no one answered the phone
Microblogging a netizen EF (abbreviated) on May 7 posted explosive: “Quanxin IC unpaid wages, April’s salary is not issued, there is no announcement, but also inaction, and there is a contract within the contract, the payday 15 days later no complaints about payroll problems, as the default. Really pit. Called 12345 hope useful.”
Radio Free Asia called Quanxin several times on the afternoon of the 21st, but no one answered the phone and switched to voice mail. There are still job advertisements for various positions at Quanxin on the Jih-Lian campus job site. When we asked Ms. Yu, the person in charge of the ad, whether Quanxin was still recruiting employees, whether it could not pay salaries, and whether it was operating normally, she only said that there was no problem at the moment and everything was normal, and hung up the phone in a hurry.
According to public information, Quanxin was established at the end of January 2019, known as the largest semiconductor enterprise in Shandong Province capital, when the three major shareholders, in addition to Cao Shan as the legal person of Yixin IC, the other two major shareholders are Jinan High-tech Holding Group, and Jinan Industrial Development Investment Group, both under the Jinan State-owned Assets Supervision and Administration Commission.
State-funded semiconductor factories fail one after another
The company’s goal is to build a 12-inch 12nm logic IC manufacturing line with an annual output of 480,000 wafers and 2,400 photomasks. construction began in the first quarter of 2019, but the 12-inch plant, which has been under construction for more than two years, has just completed piling and has 1.7 billion yuan of ordered equipment that has nowhere to be placed, making the Jinan government look forward to its son’s success.
Microblogging has netizens breaking the news that Quanxin owes wages. (Weibo)
Radio Free Asia repeatedly called the Jinan Municipal Government’s State-owned Assets Supervision and Administration Commission and Human Resources Bureau, but the voice of “call is restricted, please do not exceed your authority” appeared, and no further inquiries could be made. The online phone number of Gao Xin Holdings Group was transferred to a fax machine.
Cao Shan”, whose real identity is Bao Enbao, chairman of Anhui Dianchuang Electronics, told Jiwei that “Cao Shan”, who is registered for business in the Hongxin and Quanxin projects, is actually one of his colleagues, according to Jiwei.
The Voice of America reported that according to statistics from last October, six of China’s $10 billion-plus semiconductor projects have been halted in more than a year’s time.
Liu Mengjun, director of the Institute of Mainland Economics at Taiwan’s Chinese Academy of Economic Research, pointed out in an interview with Radio Free Asia that semiconductors are a decade in the making, and that the mainland ignores that semiconductors require long-term investment in research and development and technological energy, plus local governments use the name of semiconductors to do real estate development, not real investment in scientific breakthroughs.
Liu Mengjun said: “Often the house is built, other equipment is also ready, but the most core equipment can not buy, can not enter. In addition, many semiconductors require continuous capital increase midway, he may not have the energy. In the end, people can not find, the capital chain is broken, R & D or production team also scattered, into the phenomenon of bad buildings.”
Biden Taiwan still to the Chinese “neck” more group global semiconductor alliance
In terms of the international environment, Taiwan Institute of Economic Research industry consultant Liu Pei-zhen interviewed by Radio Free Asia, mentioned that after Biden came to power on China’s trade sanctions and did not relax, and further unite allies to jointly fight China, the formation of a semiconductor alliance, more than sixty manufacturers have joined, covering other countries and important supply chain, will crowd out foreign investment in China’s energy.
Liu Pei Zhen said: “China is facing the United States on the (China) science and technology policy gates, it is not easy to absorb foreign energy, or to overseas acquisitions, these shortcuts are more difficult than ever, although China has also launched a considerable number of support policies, but the fundamental core problem is not solved, it will only cause more investment, but there is no way to get the relative effectiveness, it will lead to the subsequent part of the manufacturers will have the operation of the energy. This will lead to difficulties in the operation of the subsequent part of the manufacturers. China to attract talent to become difficult, even Taiwan is facing the pressure of countries to decentralize production bases.”
The Japanese media has reported that about 3,000 Taiwanese engineers have been poached to companies in mainland China. Wuhan Hongxin and Jinan Quanxin, backed by the Chinese government, have been poached by TSMC, led by TSMC executives, with annual salaries and bonuses two to two and a half times higher than Taiwan’s salaries, joining forces to take away more than 100 senior engineers to build 14- and 12-nanometer wafer processes.
Quanxin rumors can not pay wages, but a number of manpower network still appeared to call for information. (Web)
Hongxin and Quanxin have both poached TSMC’s high-tech talent
The former TSMC co-chief operating officer Jiang Shangyi has been tapped to serve as the sole director of SMIC, the leading foundry in mainland China, and then recruited by Wuhan Hongxin as the chief executive officer.
Liu Mengjun believes that it is necessary to find very high-level, top-notch talents like Liang Meng-song and Jiang Shangyi, and lend their prestige to find a complete team. If only sporadic to find some Taiwan technology talent, team, the effect is not much, maybe instead of Taiwan eliminated out.
Liu Pei-zhen analysis, China’s semiconductor prospects are poor, the incentive to attract talent is reduced. In addition, Taiwan to strengthen the loopholes in regulations to produce a deterrent effect, such as the Ministry of Labor in Taiwan to restrict the head hunters, human resources agencies to publish the job vacancies of semiconductor companies in mainland China, and another business secrets law, are the government offered to strengthen the control of the loss of semiconductor talent to mainland China measures.
Liu Junxiu pointed out that mainland China’s poaching of science and technology talent many yuan, especially under the epidemic, personnel movement inconvenience, the mainland on the United States mergers and acquisitions of many technology plants, in addition to the so-called Thousand Plan, the list is endless.
China poaching 2.0 version directly in the local hiring talent R & D and then transferred
Liu Junxiu said: “may not want people to go directly to the mainland, some even set up similar R & D centers, technology enterprises in the local area, hiring local talent nearby, research and development of technology transferred to the mainland. Last time in Taiwan it happened that the use of Taiwanese businessmen, foreign businessmen pipeline in Taiwan to set up enterprises to hire technology talent to help the mainland to do scientific research work.”
Liu Pei-zhen mentioned that Europe and the United States are concerned that the concentration of semiconductors in Taiwan is too risky. To spread the risk, have to develop the local semiconductor industry. So the next phase of Taiwan’s semiconductor talent is likely to be poached by the United States.
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