It’s not all rosy in the Chinese Semiconductor market. China’s semiconductor industry is experiencing a resurgence of unfinished projects, with smaller companies going bankrupt.

This trend began in 2020 and led to over 10,000 Chinese chip-related companies closing their doors in 2021-2022. In 2023, a record 10,900 semiconductor-related companies deregistered, a significant increase from the 5,746 companies that closed down in 2022.

Shanghai Wusheng Semiconductor, a maker of OLED display drivers, microcontrollers, and CMOS image sensors, went bankrupt due to financial difficulties. Substantial government subsidies began the industry’s growth in 2014, leading to 50,000 registered companies in 2020.

However, several high-profile projects failed, and 23 companies have retracted their plans to go public since early 2023. The tightening of IPO policies in 2024 is expected to make it harder for underqualified semiconductor companies to raise capital, leading to more companies exiting the market.

Nonetheless, China’s government continues to raise money for the sector, and just recently, it poured some $47.5 billion into its Big Fund III.

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Credit: Tom’sHardware