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Semiconductor fraud in China highlights lack of accountability

Push for homegrown chipmakers leads to multimillion-dollar investment swindle

A desire by Beijing to development domestic chip companies has led to a series of reckless investments in poorly planned projects, many of which went bankrupt.   © Reuters

BEIJING -- The Chinese government has ambition to create a "national champion" in the semiconductor industry. With a clear target in place, local governments have been eager to support private enterprises that make chips -- even those with dubious credentials.

The desire to groom homegrown chip companies has led to a series of reckless investments in poorly planned projects, many of which went bankrupt within a couple of years after swiping multimillion-dollar investments from government organs.

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