China's Semiconductor Industry Advances Through Collaboration Among Government, Banks, and Enterprises

China's semiconductor industry is advancing through collaboration among the central government, local governments, state-owned financial institutions, and enterprises, forming a team system for fundraising, factory construction, and infrastructure support. The National Integrated Circuit Industry Investment Fund has invested a total of 686.7 billion RMB across three phases: 138.7 billion RMB in the first phase, 204 billion RMB in the second phase, and 344 billion RMB in the third phase, with investments directed towards companies such as SMIC, Hua Hong Semiconductor, and Yangtze Memory Technologies. Changxin Memory, established 10 years ago, has risen to the fourth position in the global DRAM market share, but has reported a net loss of 21.13 billion RMB over the past three years, during which it invested 185.2 billion RMB in R&D and equipment. The state-owned capital of Hefei provided about 80% of the funding for early projects. South Korea's Samsung Electronics and SK Hynix are responsible for investments, job creation, technology development, and support for partners. The South Korean government plans to guide 622 trillion KRW in private investment by 2047 and provide 17 trillion KRW in low-interest loans and 1.1 trillion KRW in semiconductor ecosystem funds, although most of this burden falls on enterprises. Park Kyun-soo, Executive Vice President of the Korea Semiconductor Industry Association, stated that continuous investment in the semiconductor industry is necessary, especially to maintain R&D and equipment investment during downturns. China is catching up with a national-level support system, while South Korea also needs joint action from the government, political circles, financial institutions, and enterprises to respond.

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