China is reported to have plans to set up a new organization called “Cross Border Semiconductor Work Committee” for collaboration with top international companies in semiconductor software, material, and manufacturing equipment development. Nikkei broke the news on February 3. So far various Chinese self-media translated it into Chinese, no official organizations have confirmed it yet.

The Nikkei report said the new organization will be launched in the first half of the year. It will be overseen by the Ministry of Commerce, which has jurisdiction over domestic and international investment and trade, in cooperation with the Ministry of Industry and Information Technology. A lab at Tsinghua University will coordinate the effort.

Nikkei said the proposal comes as Beijing rushes to build a domestic supply chain for semiconductors immune to U.S. sanctions.

According to Nikkei, the role of the committee will be to strengthen cooperation between the Chinese and foreign semiconductor industries.

It will invite foreign companies to set up development or manufacturing bases by working with local governments and providing funds. It also envisions offering financial backing to Chinese companies seeking to acquire overseas semiconductor-related companies.

According to documents obtained by Nikkei, among the targeted overseas companies are Intel and Advanced Micro Devices of the U.S., as well as Infineon Technologies of Germany. It also includes an industrial group in the Netherlands that counts ASML, a leading maker of cutting-edge semiconductor manufacturing equipment.

Source: Nikkei Asia

Leading Chinese companies are also expected to participate. Candidates include Semiconductor Manufacturing International Co. (SMIC), a major contract manufacturer, Advanced Micro-Fabrication Equipment, which makes semiconductor manufacturing equipment, and Xiaomi, a major smartphone manufacturer that has also started developing semiconductors. Chip-related investment funds will also participate.

Tsinghua University, Peking University, the Chinese Academy of Sciences, and other related national research institutions are also expected to participate.

China aims to promote human resources and technological development by strengthening cooperation between industry, government, and academia -- an effort that will include overseas companies.

However, given the lack of Chinese technology, the newly formed platform for international collaboration could play a key role in the effort, said the Nikkei report.