May 09, 2023 15:00:00

The Chinese government is aiming for ``semiconductor self-sufficiency'' by injecting subsidies of more than 200 billion yen annually to domestic semiconductor-related manufacturers

The United States has strict

export controls on semiconductors and related technologies to China, and Japan and the Netherlands, which have major manufacturers of semiconductor manufacturing equipment, are also following the tightening of export controls . The Chinese government, which was forced to manufacture high-performance semiconductors in its own country, will provide subsidies of more than 12.1 billion yuan (about 236 billion yen) to domestic semiconductor-related companies in 2022 alone, and the US sanctions. The attempt to counter the consolidation was reported by Hong Kong's daily South China Morning Post .

China gave 190 chip firms US$1.75 billion in subsidies in 2022 as it seeks semiconductor self-sufficiency | South China Morning Post
https://www.scmp.com/tech/tech-war/article/3219697/china-gave-190-chip-firms-us175-billion-subsidies-2022-it-seeks-semiconductor-self-sufficiency

China and the United States, which compete for the position of the world's largest economic power, have deepened their confrontation in recent years, and the United States government has criticized China for high-performance semiconductors and manufacturing on the grounds of 'protecting national security and foreign policy interests.' We are tightening regulations, such as prohibiting the export of technology. In response, China has taken countermeasures such as filing a lawsuit against the United States with the World Trade Organization (WTO) , which aims to promote free trade. increase.

The South China Morning Post reports from Chinese media ijiwei, which summarizes data obtained from financial data provider Wind, that the Chinese government will invest more than 12.1 billion yuan in 2022 alone for 190 domestic listed semiconductor companies. reportedly providing subsidies for

Of the 190 subsidized companies, the top 10 companies received 5.46 billion yuan (about 106.5 billion yen), which is 45% of the total, and this amount is also confirmed in the documents submitted by the top 10 companies. It is said that there is. It should be noted that ijiwei's report only covers companies listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange, and many other unlisted companies also receive government support through loans and direct investment, South said. China Morning Post says.

The company that received the most subsidies from the government was China's largest semiconductor

foundry , Semiconductor Manufacturing International Corporation (SMIC) , with subsidies amounting to 1.95 billion yuan (about 38 billion yen) annually. The second place is Sanan Optoelectronics , an LED chip manufacturer based in Xiamen City , Fujian Province , with a subsidy of 1.03 billion yuan (about 20 billion yen).

Other top 10 subsidy companies include Wingtech Technology , known as Apple's supplier for manufacturing chips and mobile terminals, and Yangtze River memory (YMTC) supplier Naura Technology , which is subject to sanctions by the US Department of Commerce. And so on, all of which have received subsidies of 100 million yuan (about 1.9 billion yen) or more. However, the amount of subsidy varies greatly depending on the company, and it seems that the subsidy received by the lowest-ranked company included in the report was only 200,000 yuan (about 3.9 million yen).

It is not only the central government that subsidizes semiconductor companies in China, but also many local governments. After the end of 2022, many local governments, such as

Chengdu in Sichuan Province , Suzhou and Nanjing in Jiangsu Province , and Guangzhou and Shenzhen in Guangdong Province , have responded to calls from the central government to contribute millions to several million to support the semiconductor industry. It is said that it is giving subsidies of billion yuan (about tens of millions to tens of billions of yen).

``This sum shows how companies are benefiting from China's self-sufficiency in semiconductors as the technology war with the United States intensifies,'' said the South China Morning Post. I was.