Huawei and SMIC Lead in Receiving Government Subsidies for Semiconductor Development in 2024
In an unprecedented move underlining the importance of technological advancement in the global stage, Semiconductor Manufacturing International Corp (SMIC) and Huawei Technologies have emerged as front runners in securing significant local government funding in 2024. This development is a part of Beijing’s strategic push to navigate through US-imposed sanctions on the acquisition of advanced semiconductor technology, signaling a robust effort to bolster self-reliance in the critical sector.
Notably, in the bustling metropolis of Shanghai, a significant portion of the government’s financial support for technological development has been earmarked for the semiconductor sector. Out of 191 prominent projects that have enjoyed the fruits of local government subsidies, 16 are deeply entrenched in the semiconductor industry. This includes two ambitious projects by SMIC aiming to establish 300mm production lines, which are currently in the making. By ramping up its production capabilities, SMIC is set to solidify its position as China’s leading chip maker, emphasizing the country’s determination to scale its semiconductor manufacturing landscape.
Another standout recipient of this strategic financial backing is Huawei Technologies. The tech giant’s research center, nestled in Shanghai’s Qingpu district, is a testament to the company’s unwavering commitment to spearheading innovation across multiple technology spheres – including semiconductors, wireless networks, and the Internet of Things. Slated to commence operations in June 2024, this center aims to be a beacon of research and development excellence, with plans to onboard upwards of 35,000 researchers into its fold.
The pursuit of technological sovereignty does not stop there. Another benefactor of Shanghai’s generous funding initiatives is the nation’s etching equipment leader, Advanced Micro-Fabrication Equipment. This company is set to elevate China’s capabilities in semiconductor manufacturing through the establishment of a state-of-the-art production facility, underscoring a broader national agenda to gain an edge in the fiercely competitive global semiconductor industry.
This concerted investment effort by local authorities in Shanghai vividly illustrates China’s resolve to nurture and expand its semiconductor ecosystem. By backing industry titans like Huawei and SMIC, alongside other critical projects, the country is not just aiming to weather the storm of international sanctions but also to Leap onto the forefront of technological innovation on the global stage. With these moves, China is laying down the gauntlet in the race for semiconductor supremacy, heralding a new era in the global tech landscape.
