As many as 3,470 firms – including those that use the Chinese word for ‘chip’ in their brands or operations – deregistered between January and August. That number surpassed the 3,420 such firms that closed in 2021 and the 1,397 that went defunct in 2020.
A record number of semiconductor-related Chinese corporate entities have ceased to exist in the first eight months of the year, according to the latest data from a domestic business registry service, signalling the sputtering state of the country’s chip self-sufficiency drive. As many as 3,470 companies – including entities that use the Chinese word for “chip” in their registered names, brands or operations – deregistered in the January-to-August period, according to statistics from business database platform Qichacha. That number surpassed the 3,420 such firms that closed in 2021 and the 1,397 that went defunct in 2020. “The semiconductor industry is a capital-intensive sector”, Zheng Lei, an adjunct professor at the Shenzhen Finance Institute of the Chinese University of Hong Kong, said on Thursday. He indicated that some newly registered chip firms may find it hard to stay in business against tough competition and the current harsh market environment....
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A record number of semiconductor-related Chinese corporate entities have ceased to exist in the first eight months of the year, according to the latest data from a domestic business registry service, signalling the sputtering state of the country’s chip self-sufficiency drive. As many as 3,470 companies – including entities that use the Chinese word for “chip” in their registered names, brands or operations – deregistered in the January-to-August period, according to statistics from business database platform Qichacha. That number surpassed the 3,420 such firms that closed in 2021 and the 1,397 that went defunct in 2020. “The semiconductor industry is a capital-intensive sector”, Zheng Lei, an adjunct professor at the Shenzhen Finance Institute of the Chinese University of Hong Kong, said on Thursday. He indicated that some newly registered chip firms may find it hard to stay in business against tough competition and the current harsh market environment....
Chinese chip firms going out of business in record number this year
As many as 3,470 companies – including entities that use the Chinese word for ‘chip’ in their brands or operations – deregistered between January and August.
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