Chip projects should bear greater accountability

Details of failed chip projects launched recklessly and leading to economic losses will be made public and those responsible for them held accountable, Meng Wei, a spokeswoman for the National Development and Reform Commission, said at a news conference on Tuesday.

Meng said the enthusiasm to invest in the integrated circuit industry remains high, but many enterprises lacking experience, technology or talent, let alone having any knowledge about the industry's development rules, have entered the sector, leading to a huge waste of funds and resources.

There were reports in September that a semiconductor project with around 128 billion yuan ($19.21 billion) in investment might be abandoned unfinished. This is not an isolated case. In recent years, many cities have devised plans for chipmaking projects, which they believe will bring quick returns. Lax supervision by the local authorities is as much to blame as blind competition among the cities for this phenomenon.

Regarding such nationwide enthusiasm for investing in chip projects, the NDRC has demanded that overall planning be strengthened, policies perfected, a risk prevention mechanism introduced and the responsibilities for relevant parties listed. This is a timely and also necessary reminder aimed at bringing the ever-rising enthusiasm to invest in the chip industry back to a rational state.

With increasing awareness of the chip industry's importance, more regions across the country are paying attention to the sector. This is a good phenomenon, but we should be on the alert against the reckless launch of projects that could result in bubbles and risks.

Chip manufacturing is a high-end industry, and rising investments in the sector in recent years meet the needs of urban industrial upgrading, and fit some local governments' wish to launch some "big projects" as well.

However, the long-term development of the chip industry requires good technology, supporting industries and talents. To attract chip projects, many local governments offer preferential short-term land or financial policies without taking into consideration the rules needed for the sector's long-term development. It is no surprise that some projects fail.

Any investment project faces potential risks. However, it makes sense to hold the authorities responsible for projects funded by the government if these are launched without scientific risk evaluation. Only a down-to-earth approach can help the industry usher in healthy development.