“China’s lack of success in developing high-end microchips is well-known. The National Integrated Circuit Industry Investment Fund (aka the Big Fund) has pooled $45 billion since 2014 and funded many critical projects. In 2020 alone, Chinese semiconductor firms received $35 billion in investments from official and private sources.
But, so far, Chinese chipmakers remain years, if not decades, behind their Western and East Asian competitors — and stiff Western export controls now threaten to delay their progress even further. Adding insult to injury, Chinese officials entrusted with achieving chip self-sufficiency appear to have had their hands in the till. Last year several senior executives of the Big Fund, including its general manager, were detained for suspected involvement in corruption.”