China invests $1.9 bn in top chipmaker: report

China invests $1.9 bn in top chipmaker: report
by AFP Staff Writers
Beijing (AFP) March 2, 2023
China is pumping $1.9 billion into its top memory chipmaker, according to media reports, as US restrictions on semiconductor exports threaten Beijing's tech ambitions.

Semiconductor manufacturer Yangtze Memory Technologies Co (YMTC) is set to receive 12.9 billion yuan from the state-owned National Integrated Circuit Industry Investment Fund, Bloomberg reported on Thursday, citing government data.

The move comes after the US Commerce Department in December added YMTC to its so-called "Entity List", blocking the firm along with dozens of other Chinese companies from purchasing US chip technology.

Washington has in recent months tightened restrictions on Chinese chipmakers, citing national security concerns and the ability for the technology to be used by China's defence sector.

According to US rules released last week, chipmakers benefitting from a $39 billion government fund must agree not to expand capacity in "countries of concern", including China, for a decade.

To no longer rely on foreign imports for its chips, Beijing has sunk billions of dollars into building up its own semiconductor industry over the past decade.

And in December, it filed a dispute with the World Trade Organization over US chip export restrictions, accusing Washington of protectionism and violating international trade rules.

State-controlled Chinese business news outlet Jiemian on Thursday said the investment from the national fund was part of a capital infusion that also included two companies backed by the government of Hubei province, where YMTC is based.

Apple to spend extra 1 bn euros on Munich chip hub
Frankfurt, Germany (AFP) March 2, 2023 - US tech giant Apple said Thursday it would spend an additional one billion euros ($1.1 billion) on expanding its microchip design hub in the German city of Munich.

The investment, to be spread over the next six years, comes on top of an earlier one-billion-euro commitment announced in 2021, when Apple made Munich the European headquarters of its "Silicon Design Centre".

"Our Munich engineering teams are on the cutting edge of innovation, helping imagine new technologies at the heart of the products we make," said Tim Cook, Apple's CEO.

The move is part of Apple's strategy to develop its own chips for iPhones, iPads, MacBooks and other products, in order to reduce reliance on outside suppliers.

Supply chain changes during the pandemic caused a global semiconductor shortage, hampering important industries and prompting Europe and the United States to look at ways to become less dependent on Asian production.

Apple said its latest investment would fund the creation of three new research and development sites at the existing Munich hub, housing some 2,000 engineers.

The R&D teams in Munich would contribute to developing products that deliver "greater performance, efficiency, and power savings," said Johny Srouji, Apple's senior vice president of hardware technologies.

Apple has around 4,500 employees in Germany and has had a presence in Munich since 1981.