Controversial Wuhan-based semiconductor manufacturer, Wuhan HSMC (Hongxin Semiconductor Manufacturing Co), has reportedly announced that it plans to dismiss all of its staff members, in what some industry analysts are calling a possible sign of complete failure of the company’s problematic project.
However, analysts also emphasized that this company decision is very unlikely to have any impact on future investments within China’s semiconductor sector.
According to sources privy to the matter, considering the firm’s overall status quo, there seems to be no concrete plan for resumption of business. All affected staff members would be required to submit their resignation letters before the coming Sunday and also complete their respective departure clearance within the March 5 deadline. Staff members that are currently on vacation have been requested to finish the aforementioned processes online.
As per reports, HSMC currently employs approximately 240 individuals, but it is yet unclear whether the affected employees would be liable to severance pay following their dismissal.
Veteran industry analyst, Ma Jihua, stated that the fallout of HSMC’s decision is within expectations given that the issues associated to the project had been reported over two years ago. Additionally, the company’s problems with the project do not reflect the actual situation of China’s overall semiconductor industry.
HSMC, established November 2017, had laid out plans to produce wafers with leading logic technology, ranging in sizes of 7 nanometers as well as 14 nanometers. It was expected that every HSMC production lines would make over 30,000 pieces on a monthly basis. The company’s plan had also called for an advanced wafer-level packaging production line.
The projects, however, ground to a dead halt mid-2020 owing to lack of funds. Back in November of 2020, the unit was reportedly completely taken over by a local unit of China’s State-owned Assets Supervision & Administration Commission of the State Council, Dongxihu district, Wuhan, Hubei Province, in central China.
Beijing-based telecommunication industry expert, Fu Liang, stated that the significant failure of the scale project can be attributed in part to the hasty launch of operations without thorough and systemic planning, and extensive pre-investment research.
Source credit: https://www.globaltimes.cn/page/202102/1216772.shtml