[News] China’s Final 12-Inch Fab AMS Collapses—Another Casualty in Ongoing Chip Project Failures

Jiangsu Advanced Memory Semiconductor (AMS) has issued an announcement officially declaring the failure of its restructuring plan. This not only marks the final collapse of China’s last 12-inch wafer fab project, but also serves as a typical example of the wave of unfinished tech ventures in the country, as noted by Sina.

The report notes that AMS’s restructuring efforts began in July 2023. At the time, the company—once planning to invest RMB 13 billion in a 12-inch wafer fab—was placed under bankruptcy liquidation. Its core assets included an ASML lithography machine valued at RMB 143 million, the report highlights.

AMS’s failure underscores a broader issue in China’s aggressive push to launch new semiconductor projects. According to Tom’s Hardware, while China leads globally in the number of new fabs under construction, it also tops the list of so-called “zombie fabs”—facilities that were built but never equipped or brought into operation.

Tom’s Hardware also points out that over the past several years, roughly a dozen high-profile fab projects in China—costing investors between $50 billion and $100 billion—have collapsed. Many of these failures stemmed from a lack of technical expertise and overly ambitious goals.

The situation has been further compounded by U.S. export restrictions imposed since 2019, which have barred Chinese firms from accessing critical chipmaking equipment needed for 10nm-class manufacturing, Tom’s Hardware adds.

High-Profile Chip Project Failures in China

Wuhan Hongxin Semiconductor Manufacturing Co. (HSMC) is one of the most notorious examples. According to Tom’s Hardware, HSMC was founded in late 2017 with plans to build 14nm and 7nm fabs in Wuhan, backed by an initial investment of approximately $19 billion. However, by March 2021, the local government had taken over the project and confirmed that no chips had ever been produced.

A similar case is Quanxin Integrated Circuit Manufacturing (QXIC), which also aimed for 14nm-class production. Despite government support, the project never advanced, Tom’s Hardware notes.

GlobalFoundries’ Chengdu project met a similar fate. According to Tom’s Hardware, the company pledged a $10 billion investment, with around $1 billion spent on the facility shell alone. Financial difficulties forced GlobalFoundries to abandon the project in 2018, and formal suspension notices were issued in 2020.

China’s wave of failed tech projects continued into 2024. According to South China Morning Post, Shanghai-based semiconductor start-up Woodson filed for bankruptcy in June 2024. Once considered a rising star in China’s chip industry, the company had a registered capital of RMB 10 billion and had actively recruited former executives from Samsung Electronics and TSMC, the report notes.

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(Photo credit: AMS)