Chinese enterprises for the production of memory was faced with financing challenges

Chinese enterprises for the production of memory was faced with financing challenges
In the middle of last month, it became known that the Tsinghua Unigroup holding, controlled by the Chinese authorities, cannot pay its debt obligations on time. This puts at risk the timing of ambitious projects related to the production of RAM and solid-state memory chips in China.

The fact is that Tsinghua Unigroup holding oversees two important projects for the national industry in China. In Chongqing built a plant for the production of chips of memory, but funding problems slowed down the progress of the preparatory work. The company is now unlikely to be able to start mass production of RAM chips in 2022, as previously planned.

As the Nikkei Asian Review notes, citing its own sources, the situation is aggravated by a personnel shortage and technological problems, which also significantly slows down the implementation of the project. Another problem area is the Yangtze Memory (YMTC) enterprise for the production of 3D NAND memory in Chengdu, which was planned to spend $30 billion to develop. At first, it was planned to process up to 100 thousand silicon wafers per month, and then the production capacity was to be tripled. This would allow YMTC to take up to 20 % of the solid-state memory market in physical terms.

YMTC also faced delays in the construction schedule and delays in financing the purchase of technological equipment. The essence of the problem faced by the Chinese semiconductor industry this year is the desire of local authorities to take a more reasonable approach to financing specialized projects. Many Chinese companies in the sector are funded either by municipal budgets or from Beijing, but the Central authorities have recently begun to criticize the behavior of regional officials, who sometimes thoughtlessly invest in a variety of projects. The tightening of budget discipline has become a source of problems for Tsinghua Unigroup, which exists mainly on public money.
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