reply Foreign media: to improve the semiconductor self-sufficiency rate China began to run at an accelerat

Foreign media said that Chinese companies hoping to achieve semiconductor localization are rapidly expanding the scale of financing. China is doing its best to boost semiconductor self-sufficiency.China's semiconductor self-sufficiency rate is just over 10 percent, but smartphones with a high share of the global market and devices for the new generation of communications network, 5G, have given China great international influence, the Nikkei reported on July 7. If the US were to push China out of the semiconductor market to contain its rise in high-tech, China would not only struggle to produce those products, it would probably be at a disadvantage in the battle for supremacy.Based on data from China's private databases, corporate announcements and media reports, The Nikkei business Daily calculated the amount of stock financing for semiconductor related companies. The amount raised in 2020 as of July 5 reached 144 billion yuan, which in about half a year would significantly exceed the total amount raised in 2019 (about 64 billion yuan).According to the report, the reason is that the "chip war" initiated by the United States has caused a sense of crisis in the Chinese government. Zte, a Chinese telecommunications equipment company, was hit by the Trump administration's sanctions in 2018. Huawei Technologies Has also had trouble procuring the most advanced semiconductors, making it difficult to import some of its semiconductor manufacturing equipment.China's central and local governments have set up semiconductor funds aimed at making semiconductors domestically and started investing in Chinese companies, the report said.China set up a government-funded semiconductor fund, the National Integrated Circuit Industry Investment Fund, in 2014, and has invested 140 billion yuan by 2019. The second phase of the National IC Industry Investment Fund will be established in the autumn of 2019, and investment will start from 2020. Shanghai and Beijing have also set up funds, and central and local governments are teaming up to support semiconductor localization.A typical example is SMIC, a large Chinese semiconductor contract manufacturer, the report said. Smic could raise As much as Rmb50bn when it goes public on the Ketron board this month. The company also raised $2.25 billion in financing.The US Integrated Circuit Research Corporation predicts that China's semiconductor self-sufficiency rate could reach more than 20 per cent by 2024. As of December 2019, China's Taiwan, South Korea and Japan were among the world's top three semiconductor producers, while The Chinese mainland ranked fourth, but has overtaken the US, according to the company's data. The Chinese mainland is expected to rank third in 2020 and second in 2022.Separately, THE US consumer News and Business channel website reported on July 7 that SmIC, a major Chinese chip maker, launched a share offering worth 46.28 billion yuan on July 7.That is more than double the company's initial fundraising target. Smic's Hong Kong-listed shares surged as investor excitement mounted ahead of its Shanghai listing. Indeed, its Hong Kong shares are up about 26 per cent in the past five days and more than 200 per cent so far this year.Smic is believed to be a key player in China's ambitious drive to increase chip self-sufficiency, according to the report. This round of financing could help SMIC catch up with rivals Taiwan Semiconductor Manufacturing And Samsung Electronics of South Korea.Smic will initially sell 1.685bn shares at Rmb27.46 each. If demand is high, underwriters can increase the total number of shares on offer to 1.93846.3 billion. Smic could raise Rmb53.23bn if the overallotment option is fully exercised.According to the report, data from Us-Based Dillon & Co showed that the offering was the biggest in mainland China in a decade.