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Chinese authorities are not ready to finally bury the HSMC project for the production of 7nm chips
09.03.2021 [08:46],
Alexey Razin

At the end of 20021, Wuhan Hongxin Semiconductor Manufacturing Co (HSMC) was founded in Wuhan, which expected to invest $ 19.8 billion in the construction of a modern 7nm contract manufacturing facility for the needs of Chinese customers. The project did not materialize, and the local authorities now have to find a better use for the land plot and unfinished buildings of HSMC.

Image source: HSMC

As previously reported, by the end of February, employees involved in the construction of HSMC’s Wuhan facility were encouraged to apply for resignation of their own free will. Someone preferred to challenge such a decision of the employer in court, others agreed to leave with the payment of a monthly salary as compensation. As noted by the Nikkei Asian Review, there is not much activity at the site in Wuhan, several construction cranes are idle, one administrative building and two production buildings are empty in different stages of readiness. Even from the nearby bus stop, the mention of HSMC, which appeared there after the start of construction, disappeared.

This week, as noted by representatives of one of the contractors employed at the construction site, some decision may be made about the future of this site, which is now under the control of local authorities. According to some reports, the search for partners for the resumption of the project is still ongoing, the authorities are ready to assist in the payment of HSMC’s debts to contractors and equipment suppliers. The bulk of laid-off staff are quite happy with the payments that have continued since last year, when HSMC was already having funding problems. The only reason for dissatisfaction is the suddenness of layoffs, since many laid-off employees did not expect such an outcome and did not look for «backup options» in advance.

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