The Chinese authorities have initiated criminal proceedings against officials responsible for the import of semiconductors

The Chinese authorities have initiated criminal proceedings against officials responsible for the im

In 2014, at the initiative of the PRC authorities, China ' s Fund for Investment in the Integrated Microscheme Industry was established, which received funds from government-supported banks and was allocated in favour of companies involved in the development of national production of semiconductor components, and the import-substitution initiative is now pushing the investigative authorities to see how well the fund ' s funds have been spent.

According to Nikkei Asian Review, justice activity has increased in the light of the next Congress of the Communist Party of China, scheduled to be held in the autumn of this year, and the country ' s political leadership has been perplexed by the lack of obvious progress in raising the technological sovereignty of the PRC over the years; indeed, in 2015, it was decided that China should increase the proportion of semi-conductor components produced in its territory for domestic use from 10 per cent to 70 per cent over a decade; now, experts estimate that this level does not exceed 20-30 per cent and that there is not much time left until 2025.

At the end of July, Dean Wenwu, former president of the CICF Foundation, was investigated because he was suspected of using public funds for personal enrichment, before Dean Wenwu served as head of the Department of Semiconductor Industry in the Ministry of Industry and Information Technology of the PRC. Since its inception, he has managed to raise $50.3 billion and has allocated about two thirds of that amount.

In the past month, the investigative authorities initiated criminal proceedings against a number of other members of the foundation, and the former head of the Chinese conglomerate Tsinghua Group Zhao Weiguo was arrested, and CICF funds were sent to support companies that are members of the holding company Tsinghua, the memory producer YMTC and the developer of the UNISOC processors.

Last year, China sold $150 billion in semi-conductor products, which is three times the 2015 level, which was still insufficient to cover domestic demand, and the value of semi-conductor imports into the PRC in the 2021 period doubled from 2015, to $400 billion in American sanctions against this sector of the Chinese economy, in the meantime only getting worse, and this year it was prohibited to export to the PRC equipment that would allow the production of 14 nm or less lithographic chips, and companies claiming American subsidies should abandon plans to expand the production of technology components to 28 nm inclusive by 10 years.