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, one of the promoters and shareholders of “Quanxin”, “Yixin”, controlled by Cao Shan, had made a “0” capital contribution, just like Hongxin.
The Chinese website Jiwei.com reported on the 20th that Quanxin employee Li Ming (a pseudonym) told the website, “The company’s situation is getting more and more difficult, and it has started to stop paying salaries since last April, 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 explode the company’s unpaid wages forced to leave the Quanxin company no one to answer the phone
Microblogging a netizen EF (for short) posted on May 7: “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. We asked Ms. Yu, the person in charge of the ad, whether Quanxin was still recruiting employees, whether it was not paying salaries, and whether it was operating normally, but 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 construction of the 12-inch factory, which has been under construction for more than two years, has just completed piling, and there is nowhere to place the 1.7 billion yuan of equipment ordered, making the Jinan municipal government a tiger.
Radio Free Asia repeatedly called the Jinan Municipal Government’s SASAC, Human Resources Bureau and other units, all appear “call restrictions, please do not exceed the right to use” voice, unable to further inquiries. 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, the Taiwan Institute of Economic Research industry consultant Liu Pei-zhen interviewed by Radio Free Asia mentioned that Biden has not relaxed the trade sanctions against China (Communist Party of China) after taking power, and further united with allies to fight against China, forming 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 Communist government, have poached TSMC, led by TSMC executives, and have teamed up to take more than 100 senior engineers with contracts that offer annual salaries and bonuses two to two and a half times higher than Taiwan’s salaries, in a bid to build 14- and 12-nanometer wafer processes.
Hongxin and Quanxin have 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 CEO.
Liu Mengjun believes that it is necessary to find very high level and top talents like Liang Meng-song and Chiang Shang-yi, and lend their reputation 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 scientific and technological 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 employment of talent R & D and then transferred
Liu Junxiu said: “Not necessarily people directly to the mainland, some are even in the local establishment of similar R & D centers, science and technology enterprises, near the employment of local talent, 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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