China is setting its target of becoming a global superpower in semiconductor segment. The latest $24-billion semiconductor project by State-run XMC is expected to strengthen China's position in the global chip manufacturing industry. tHE Chinese government is keen on making domestic semiconductor industry a major global hub for chip manufacturing activity.
In a partnership with a US company, the $24-bln semiconductor facility will manufacture memory chips in different electronic devices. XMC will build its own semiconductor manufacturing facility by setting up two chip manufacturing plants. In addition to these, XMC will set up a dedicated facility for supply chain capabilities. Chinese government is encouraging semiconductor segment to compete with global majors.
The Wall Street Journal reports that Chinese contract chip maker XMC will set up $24-billion chip manufacturing facility in association with a US company. Its ground-breaking ceremony is scheduled on Monday. The Chinese government-run XMC will manufacture memory chips for several electronic devices.
The $24-bln semiconductor manufacturing facility will commence production in three stages. In the first stage, flash memory chips will be manufactured. Another plant will make chips and the third phase will have devoted facilities for suppliers.
Encouraged by Chinese government support, several domestic companies are coming forward to set up their own chip making units. Some companies are developing software products for mobile devices. Chinese tech majors account for about 80 percent of domestic smartphone market.
China Economic Review further adds that the project would be funded through a national semiconductor fund. The provincial government of Hubei is also investing in the $14-bln project in three phases.
Industry analysts feel that how big the move may be, China can still grab a small slice of global semiconductor segment. But, it'll be a major step forward for the world's second largest economy. China's economy is undergoing a major transition and moving towards high-value industries.
The Chinese government in 2015 has set a target of achieving 70 percent of requirement for semiconductor domestically. It is encouraging domestic semiconductor companies to make chips locally meeting the domestic demand, as reported by Fortune.
The major chip manufacturing project is a first-of-its-kind in China. Now, all eyes are on the country whether it can catch up with global chip majors such as South Korea, Taiwan, Singapore, US and Japan.
China's largest smartphone vendor Huawei Technologies Co Ltd is developing its own mobile processors and operating systems. Huawei has already made a home-made processor called Kirin 950, which is fitted into latest device Mate 8 smartphone available at Yuan 3,000. The latest phone from Huawei is pitched against iPhone 6S and Samsung Electronics Co's Galaxy series.
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