20/05/2020
- US chip giant GlobalFoundries confirms it has ceased operations at its only Chinese facility, with industry experts saying the poorly-planned project was doomed to fail
- Closure deals blow to China’s plans to move up semiconductor value chain, amid increasingly hostile tech rivalry with the United States
Beijing boasted that the final total investment in the GlobalFoundries plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018. Photo: Weibo
US chip giant GlobalFoundries has halted operations at a joint venture factory in China, the company has confirmed, dealing a potential blow to China’s bid to own a bigger slice of the global semiconductor market.
The closure of the firm’s only China facility comes just three years after it announced plans to make chips in the mainland, and comes amid an escalating tech war with the United States.
The winding down, however, has little to do with the fierce superpower rivalry. It comes after two years of speculation as to what was actually happening at the US$100 million facility, which was hailed as “a miracle” by local media when announced to fanfare in 2017, but which never got off the ground.
Nonetheless, the symbolism is rich.
China is struggling in its efforts to boost its domestic chip research and production in a bid to counter US efforts to block it from American technology.
Last week, the US Department of Commerce upped the ante by
banning the sale
of Huawei-designed chips produced outside America if they are made using the US software and technology, adding further pressure to the Chinese telecom giant’s global supply chain.
The GlobalFoundries factory, in a hi-tech park in the southwestern city of Chengdu, was one of China’s major foreign-invested semiconductor projects, for which the local government rolled out the red carpet three years ago.
At the time, Chengdu boasted that the final total investment in the plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018.
A spokesperson for California-based GlobalFoundries confirmed that the Chengdu plant had stopped operations and that it had offered staff an “employee optimisation plan”, a commonly-used euphemism for lay-offs.
“The plan is being carried out on the basis of open and transparent communications with the employees and they have been offered various options to choose from based on their personal situations,” a company statement read.
A 2018 annual report from the joint venture, in which GlobalFoundries had a stake of 51 per cent with the rest controlled by an investment vehicle of the Chengdu government, showed that the plant had 320 employees.
A company notice sent to employees dated May 14 and seen by the Post said that after mid-June, the company would only pay 70 per cent of Chengdu’s minimum monthly wage, about 1,246 yuan (US$175.38), while negotiating severance packages with staff.
For some industry analysts who have followed the Chengdu project from its inception, its demise has less to do with the trade war, more to do with poor planning.
There was little detailed research and planning before the project was launched. As far as the Chengdu government is concerned, it lacks a sufficient understanding of GlobalFoundriesGu Wenjun, analyst
“There was little detailed research and planning before the project was launched. As far as the Chengdu government is concerned, it lacks a sufficient understanding of GlobalFoundries, its decision-making mechanism and economic strengths, and it did not get strong support from the central government,” said Gu Wenjun, chief analyst at Shanghai-based semiconductor research firm ICwise.
The idea of establishing a joint venture was first pitched to
Chongqing municipality, a neighbouring city of Chengdu, in 2016. Chongqing signed a memorandum of understanding with GlobalFoundries to set up a plant to manufacture 300mm silicon wafers – components for making integrated circuits – using technology from GlobalFoundries’ Singapore factory.
After the deal to open a Chongqing plant fell through for unclear reasons, Chengdu moved in to cut a deal with GlobalFoundries in late-2016. A 2017 blueprint stated that 3,500 employees could be working at the site, according to Wallace Pai, then GlobalFoundries’ general manager for China.
But production never started. Initially the project was supposed to have two phases: using mainstream technologies to manufacture 300mm wafers from 2018, then transferring to more advanced technologies in late-2019.
However, in October 2018, the two partners decided to “bypass” the phase one manufacturing stage, partly because of China’s increasing demand for more advanced products and GlobalFoundries’ own financial stress. The project has since stalled.
Comparing official announcements from the Chengdu government and GlobalFroundries back in 2017, Gu from ICwise said the two had different focuses, which might explain the plant’s derailment. The government clearly wanted to bring in mainstream, lower-risk technologies to boost the city’s brand, while the company aimed for Chinese capital and government support to invest in more advanced technology, Gu said.
The joint venture will continue after the factory’s demise, with GlobalFoundries still expecting to expand sales in the Chinese market, the company said in its statement. It now has five factories, three in the US and one each in Singapore and Germany.
When The Post contacted the office of the joint venture partner within the Chengdu government, the person answering the phone said they did not know anything about the closure nor future plans, before hanging up without giving their name.
“Our focus in China is on developing and growing our partner ecosystem including creating local technology infrastructure and bringing more intellectual property vendors and electronic design automation partners to better serve the local market,” the company said.
According to the China Semiconductor Industry Association, China’s integrated circuits sales rose 15.8 per cent in 2019 from a year earlier to 756.2 billion yuan (US$106.44 billion), while sales in the global semiconductor market dropped by 12 per cent to US$412 billion.
Last week, Dutch company ASML Holding, a key supplier of chip-making equipment, set up a plant in Wuxi, in Jiangsu province, in a boost to China’s efforts to attract foreign semiconductor investment.
Source: SCMP
Posted in advanced technologies, American, ASML Holding, ‘a miracle’, Beijing’s, blow, Chengdu, China, China Semiconductor Industry Association, chip, Chongqing Municipality, Dutch, euphemism, Factory, foreign, Germany, global, GlobalFoundries, hailed, hostile, Huawei-designed chips, Investment, jiangsu province, lay-offs, mainstream, manufacture, plans, production, semiconductor, semiconductor giant, semiconductor market, shuts, Singapore, symbolism, tech rivalry, technologies, Technology, transferring, Uncategorized, United States, US chip giant, US Department of Commerce, value chain,, Wuxi |
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14/05/2020
Members of Chinese medical team attend a ceremony at Jiangbei International Airport in southwest China’s Chongqing, May 13, 2020. The Chinese government will send a team of medical experts to Algeria to help the country fight the COVID-19 pandemic. These experts, specializing in areas including respiratory diseases, intensive care, infectious diseases, and laboratory testing, will fly to Algeria on early Thursday morning. (Xinhua/Liu Chan)
CHONGQING, May 13 (Xinhua) — The Chinese government will send a team of medical experts to Algeria to help the country fight the COVID-19 pandemic.
The team, organized by the National Health Commission, consists of 20 medical experts, including 15 from southwest China’s Chongqing Municipality and five from China’s Macao Special Administrative Region.
These experts, specializing in areas including respiratory diseases, intensive care, infectious diseases, and laboratory testing, will fly to Algeria on early Thursday morning.
Upon arrival, the team will exchange experience with their Algerian counterparts and offer training for medics on the prevention, control, diagnosis, and treatment of the COVID-19 virus.
The team will also carry urgently needed medical supplies donated by Chongqing, including medical masks and medical protective clothing.
Source: Xinhua
Posted in Algeria, Chongqing, Chongqing Municipality, control, Country, Covid-19 pandemic, Covid-19 virus, diagnosis, donated, exchange, experience, fight, infectious diseases, intensive care, laboratory testing, Macao Special Administrative Region (SAR), medical experts, medical masks, medical protective clothing, medical supplies, National Health Commission, prevention, respiratory diseases, Southwest China's, specializing, the Chinese government, Thursday, treatment, Uncategorized, urgently needed |
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17/10/2019
Vice Premier Han Zheng, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, learns about applications of smart robot and 5G technology in fields like remote driving, education and tourism, at an experience park in southwest China’s Chongqing Municipality, Oct. 15, 2019. Han made a research trip to Chongqing on Monday and Tuesday. (Xinhua/Liu Weibing)
CHONGQING, Oct. 16 (Xinhua) — Vice Premier Han Zheng has called on southwest China’s Chongqing Municipality to promote high-quality development and continue to break new ground in all areas.
Han, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks during a research trip to Chongqing on Monday and Tuesday.
Chongqing should play a key role in advancing the large-scale development of the western region, promoting the joint construction of the Belt and Road Initiative and the green development of the Yangtze River Economic Belt.
During his visit to an auto research and development center and a new-energy vehicle (NEV) manufacturer, Han stressed more input in research to make breakthroughs in key auto parts, and called for the building of homegrown auto brands, wider application of NEVs in urban public transport and the sustainable development of the industry.
Efforts should be made to foster intelligent industries, popularize intelligent technologies and knowledge, and develop intelligent economy, he added.
In his visit to a semi-conductor firm, Han encouraged local companies to enhance their competitiveness and asked local authorities to further improve the business environment.
Source: Xinhua
Posted in auto research and development center, Belt and Road Initiative, Belt and Road Initiative (BRI), business environment, Chinese Vice Premier Han Zheng, Chongqing Municipality, competitiveness, green development, high-quality development, intelligent economy, intelligent industries, intelligent technologies and knowledge, NEVs, new-energy vehicle (NEV) manufacturer, semi-conductor firm, Standing Committee of the Political Bureau of the Communist Party of China Central Committee, Uncategorized, urban public transport, Vice Premier Han Zheng, Yangtze River Economic Belt |
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07/10/2019
BEIJING, Oct. 7 (Xinhua) — Parts of southern and western China will be swept by heavy rains, according to the National Meteorological Center (NMC).
Southern part of of south China will experience heavy rains or rainstorms Monday, with heavy downpours in some areas, said the NMC.
Parts of Chongqing Municipality and Sichuan Basin, as well as southern Shaanxi province will have heavy rains or rainstorms from Monday to Tuesday.
China’s western areas will be gripped by continuous rainfalls until Saturday, with the cumulative precipitation in parts of Shaanxi, Sichuan, Hubei provinces and Chongqing Municipality topping 180 mm.
The NMC warned against potential geological hazards that may be caused by lingering rains.
Source: Xinhua
Posted in brace, China alert, Chongqing Municipality, geological hazards, Heavy rains, hubei province, National Meteorological Center (NMC), shaanxi province, Sichuan Basin, sichuan province, Uncategorized |
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11/09/2019
- Police in Fujian ask people who picked up notes to ‘be rational and return the money’
- Impulse move caused traffic jams as pedestrians ran into road to grab what they could
The man from Shishi city in Fujian province who tossed US$14,000 into the air after a bad day at work has asked for help in getting it back. Photo: Weibo
The man from southeastern China who caused a cash frenzy on the street after he threw more than 100,000 yuan (US$14,052) into the air because he’d had a bad day at work is asking for his money back, authorities said.
Huang, 42, said he acted on impulse after he withdrew cash from a bank in Shishi city, Fujian province, on Monday.
His actions caused a traffic jam and passers-by fell over each other to grab what they could, the municipal police bureau said on Tuesday.
The man, who said he was having trouble at work, now regrets what he did and is hoping he will get the money back, the police statement issued on Weibo, China’s Twitter-like microblogging platform, said.
Police in Fujian said Huang’s impulsive move had caused him a lot of trouble and asked the public to return the money he threw away. Photo: AFP
Officers criticised Huang for his “inappropriate behaviour” and urged those who picked up the cash to take it to the police.
A video clip shared on Weibo on Tuesday showed motorists pulling up sharply in the street to pick 100 yuan banknotes off the road.
In another video, pedestrians were seen rushing into the middle of the road to join in the frenzy.
Banknotes falling from the sky send crowd into a frenzy in Hong Kong neighbourhood of Sham Shui Po
Some of the money had been returned by Tuesday evening, the Shishi police Weibo account said.
“Huang is from an ordinary family and not rich at all. A sudden impulse has caused big trouble for himself and his family. Please be rational and return the money,” it said.
On December 24, 2014, Hong Kong Police appealed to the public for help after a G4S Hong Kong van carrying HK$525 million (US$66.9 million) crashed on a main road near Wan Chai district, causing major traffic jams as motorists abandoned their cars to collect notes.
While armed police were quickly on the scene and closed off two lanes of the road, witnesses reported money being taken. One office worker said she saw a “regular Hong Kong lady” walking briskly away from the scene with 10 bricks of notes.
In March 2017, a woman threw away more than 16,000 yuan (US$2,250) in cash at a busy crossing in southwestern Chongqing municipality, but passers-by simply looked on instead of scrambling to pick up the money, the Chongqing Morning Post reported.
Police collected the bills quickly and found the owner. She said she threw the money because she was “in a bad mood”.
Source: SCMP
Posted in back, bad da, bad day, Chinese man, Chongqing Morning Post, Chongqing Municipality, Fujian Province, Hong Kong, inappropriate behaviour, money, motorists, neighbourhood, pedestrians, pleads, Police, scattered, Sham Shui Po, Shishi city, street, traffic jams, Uncategorized, Wan Chai district, Weibo, work |
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07/07/2019
WUHAN, July 6 (Xinhua) — The middle and lower reaches of the Yangtze River, China’s longest river, is likely to see flooding as a new round of sustained strong rainfall is forecast to lash the region from Sunday to next Wednesday, the Changjiang Water Resources Commission said Saturday.
Hydrometeorological forecasts show heavy rain with a precipitation ranging between 120 mm and 210 mm will hit the Yangtze’s middle and lower reaches in the following four days, causing the water levels of the mighty river’s many tributaries to reach alarming levels.
Some small and medium-sized rivers in Chongqing Municipality and the provinces of Hunan, Hubei, Jiangxi, Anhui, Jiangsu and Guizhou are also likely to see relatively serious flooding, according to the commission.
The commission activated an emergency response for flooding Saturday noon and advised local governments in affected areas to take precautions against possible disasters.
Source: Xinhua
Posted in Anhui province, Changjiang Water Resources Commission, Chongqing Municipality, emergency response, Floods threaten, Guizhou Province, heavy rain, hubei province, Hunan Province, Hydrometeorological forecasts, jiangsu province, Jiangxi Province, middle and lower reaches, serious flooding, Uncategorized, Yangtze River |
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02/07/2019
BEIJING, July 1 (Xinhua) — Several provincial-level regions on Monday started implementing the “China VI” vehicle emission standards ahead of schedule to ramp up efforts against a major source of air pollution.
Sales and registrations of new vehicles in regions including Beijing, Shanghai, Tianjin, Hebei Province and Guangdong Province now have to comply with what is believed to be one of the world’s strictest rules on automobile pollutants.
In Beijing, all new buses and other heavy-duty diesel vehicles shall follow the new emission rules, while all new vehicles are expected to follow suit starting Jan. 1, 2020.
All existing vehicles on the roads are obliged to meet the previous “China V” emission standards.
According to official data, emissions from some 6.2 million vehicles were responsible for 45 percent of Beijing’s concentration of small, breathable particles known as PM2.5, a key indicator of air pollution.
Compared with the “National V” standards, the new rules demand substantially fewer pollutants such as nitrogen oxides and particulate matters and introduce limits on particulate number and ammonia.
The new emission standards were initially set to take effect nationwide from July 1, 2020. A three-year action plan on air pollution control released last July urged early implementation in major heavily-polluted areas, the Pearl River Delta region, Sichuan Province and Chongqing Municipality.
Automakers and the market have been preparing for the tougher rules.
Manufacturers have completed the development of most “China VI” models and have entered the stage of mass production and sales, said Liu Youbin, a spokesperson with the Ministry of Ecology and Environment.
By June 20, 99 light vehicle makers had unveiled environmental protection information of 2,144 new models and 60 heavy-duty vehicle manufacturers unveiled information on 896 green models, Liu said.
“The market has basically accomplished a smooth transition,” Liu said.
Li Hong, an official with the China Association of Automobile Manufacturers (CAAM), said roll-outs of “China VI” vehicles as well as preferential tax and fee policies would boost China’s auto market.
“The production and sales of new energy vehicles (NEVs) will continue its relatively fast growth,” Li said.
Car sales in China continued to drop in May, with about 1.913 million vehicles sold, down by 16.4 percent year on year, CAAM showed. Bucking the trend, sales of NEVs kept growing that month, edging up 1.8 percent year on year.
China saw robust sales growth of NEVs in the first four months this year with 360,000 NEVs sold, surging by 59.8 percent from the same period a year earlier.
Chinese authorities have announced that the tax exemptions on NEV purchases will continue through 2020 to boost the country’s green development and retain a strong domestic market.
Source: Xinhua
Posted in Beijing, Chongqing Municipality, guangdong province, Hebei province, implementing tougher vehicle emission standards, Ministry of Ecology and Environment (MEE), new energy vehicles (NEVs), Pearl River Delta, Shanghai, sichuan province, strictest rules on automobile pollutants, Tianjin, Uncategorized |
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20/04/2019
BEIJING, April 19 (Xinhua) — In the countdown to China’s deadline to eradicate absolute poverty by 2020, the socialist system is playing a crucial role.
“Socialism means development. Development must serve the common prosperity for everyone,” President Xi Jinping called for greater efforts to win the battle against poverty on time during a recent inspection tour to southwest China’s Chongqing Municipality.
China’s socialist system has made it possible to pool resources for its aims and stick to its targets from start to finish, especially when it comes to tasks concerning people’s livelihoods.
Thanks to consistent hard work, more than 700 million Chinese people have been lifted out of poverty in the past four decades, with poverty rate in rural areas lowered from 97.5 percent in 1978 to 1.7 percent in 2018.
The Communist Party of China (CPC) in 2017 pledged to eliminate poverty in all poor counties and regions by 2020, waging a final war on poverty to realize its goal.
Under the leadership of the CPC, poverty alleviation has become a strategic task for the country. Governments at every level have taken steps to ensure the task is completed on time.
Party members have been dispatched to impoverished villages across the country to assist poverty reduction work, including government officials, ex-servicemen and college graduates, all working to fully implement the central government policy.
China has made it crucial to adopt customized measures based on local conditions to ensure resources are used in the right place at the right time.
With only two years until the deadline, the country is at a critical juncture in finishing off the final, and most difficult tasks, in its poverty reduction campaign. The socialist system will continue to show its strength in the final battle.
Source: Xinhua
Posted in best way to eradicate poverty, China alert, Chongqing Municipality, Communist Party of China (CPC), President Xi Jinping, Socialism, socialist system, Uncategorized |
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16/04/2019
Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, talks with villagers to learn about the progress of poverty alleviation and in solving prominent problems including meeting the basic need of food and clothing and guaranteeing compulsory education, basic medical care and safe housing, in Huaxi Village of Shizhu Tujia Autonomous County, southwest China’s Chongqing, April 15, 2019. Xi went on an inspection tour in southwest China’s Chongqing Municipality Monday. (Xinhua/Xie Huanchi)
CHONGQING, April 15 (Xinhua) — Xi Jinping, general secretary of the Communist Party of China Central Committee, went on an inspection tour in southwest China’s Chongqing Municipality Monday.
Source: Xinhua
Posted in China alert, Chinese President Xi Jinping, Chongqing, Chongqing Municipality, general secretary of the Communist Party of China Central Committee, inspection tour, Uncategorized |
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CHINDIA ALERT: You'll be living in their world, very soon 