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China’s chips push is mired in corruption allegations
The state’s money is not producing the expected results
Aug 18th 2022 | BEIJING
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China’s habit of pouring cash into strategic industries creates opportunities for corruption. Just look at the microchip business. The “Big Fund” was created in 2014 to spur self-reliance in chipmaking. Backed by state investors, it has raised 343bn yuan ($50bn). But several of the fund’s executives are suspected of corruption, including its head, Ding Wenwu.
The investigation may be motivated by more than just concern over graft. Chips are used in everything from mobile phones to missiles, which is why China’s leaders don’t want to rely on other countries to make them. But the progress of China’s chip industry has not met expectations. Self-reliance may be decades away, if it is achievable at all.
China’s chips push is mired in corruption allegations
The state’s money is not producing the expected results
www.economist.com