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China wages war on 'corruption' in chip industry after years of fundraising

Semiconductor executives investigated after massive investments fail to take off

China's chipmaking industry has a long way to go before attaining 70% self-sufficiency by 2025.   © Reuters

BEIJING -- China is clamping down on the misappropriation of funds inside the national chip industry as its rivalry with the U.S. in semiconductors heats up and an important Communist Party national congress is just a few months away.

Authorities have launched a barrage of investigations against semiconductor executives in recent weeks. The white collar busts are happening during the run-up to this fall's twice-a-decade Communist Party congress. The timing suggests that the central leadership is frustrated that China's semiconductor industry is not growing as fast as anticipated.

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