While the West is arguing about smaller amounts of billions for the semiconductor industry in the next five to ten years, China is investing just under 45 billion US dollars in a new company that was only founded in March of this year Company. Former TSMC and Elpida employees sit on the management floor.
On paper, SwaySure Technology Co., Ltd is a new startup from the Chinese metropolis of Shenzen was launched in March this year. A number of trademark entries have followed since April, accompanying the planned start for the world stage. According to media reports, the efforts are being directed 100 percent by the Chinese state, but the initial financing mainly affects the big plans.
A lot of money from State
The initial 5 billion Chinese yuan (US$750 million) was made available in March this year. But that was only a good first percent, so to speak, because the plans for Gigafab, which exposes up to 140,000 wafers per month in 28 nm technology on 300 mm discs, will require much more money. According to consistent media reports, 300 billion Chinese yuan are now under discussion, the equivalent of 44.8 billion US dollars. And that supposedly only for one company. Shell construction is said to be underway, the first equipment could be installed next year, and DRAM chip production could start in 2024.
That makes all Western efforts to establish new semiconductor industries in their climes pale once again. At the political level, the US Chips Act is still struggling for around 52 billion US dollars, the EU had initiated up to 43 billion euros, but here too it was spread over years. The Chinese state, on the other hand, wants to see this production in its own country with all its might, it is not the only project with huge financial backing from the state.
Well-known managers from TSMC and the former Japanese memory manufacturer Elpida have been brought in to manage the company. A former TSMC executive who ran several TSMC factories until three years ago is CEO with over 30 years of experience in the industry. The Japanese Yukio Sakamoto is responsible for the strategy. The 74-year-old was CEO of Elpida for ten years and has been trying to help in the semiconductor industry in China in recent years, including in the well-known Tsinghua Unigroup, which collapsed last year.
In the end, it remains to be seen how the implementation will succeed. Because money alone and a well-known staff are no guarantee for success. Some projects were only stopped at the beginning of this year after the collapse of the Tsinghua Unigroup.