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What's left in China's former field of chip dreams

$19bn showcase HSMC stops construction and offers severance but not closed yet

The air of uncertainty lying over Hongxin Semiconductor Manufacturing Co. is a far cry from the high hopes that many had for the project at its inception in 2017.   © Reuters

Located in an industrial park outside the city of Wuhan, Hongxin Semiconductor Manufacturing Co. (HSMC) was meant to become a $19.8 billion showcase and central plank in China's plans to create a homegrown microchip industry capable of challenging the West.

Today that same land parcel is mostly quiet, populated only by several idle cranes and three buildings in various stages of construction. One was meant to house the company's administrative offices, while the other two were meant to produce chips using 14- and 7-nanometer technology, putting them at the cutting edge of the chipmaking-making industry.

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