【Epoch Times October 23, 2025】Zhejiang Jinhua’s Qingke Semiconductor Company has been declared bankrupt by the court. The company’s original plan to invest 2 billion yuan in the construction of high-end chip projects has come to a disappointing end. Additionally, in early September, Xirenma Joint Testing and Control Technology Co., Ltd., a semiconductor company in Quanzhou, Fujian, was also accepted for bankruptcy liquidation.
According to the announcement from Wucheng District Court in Jinhua, Zhejiang, the court accepted the bankruptcy liquidation case of Qingke Semiconductor Co., Ltd. on August 5 and designated Zhejiang Zhenjin Law Firm as the administrator on September 3. The court required creditors to submit information within 15 days of receiving notice, declare their claims by October 15, with the first creditors’ meeting scheduled for October 21 (this week).
A legal professional in Zhejiang, Mr. Zhu, mentioned that the announcement indicates the case has entered the substantive liquidation stage. “Since the first half of the year, these bankruptcy cases have been piling up, and the courts are overwhelmed with processing them. The rhythm from filing to arranging meetings in the Qingke bankruptcy case illustrates the normalization of corporate bankruptcies by local courts.”
Qingke Semiconductor Co., Ltd. was established in April 2021 with a registered capital of 100 million yuan, of which 50.61 million yuan was actually paid. The legal representative is Ye Maosen. The company’s main business is in integrated circuit chip design and manufacturing, as well as research and development in artificial intelligence computing modules and Internet of Things terminal products. In 2022, the company launched the Jinhua High-end Chip Industry Base project, planning to build a research and development center, testing plant, and application demonstration area, with a total planned investment of about 2 billion yuan. Business data shows that the two main shareholders of the company are Ye Maosen and Hainan Jiuxin Cheng Investment Co., Ltd.
An entrepreneur in Jinhua Science and Technology Park, Zou Jun, said that projects like these rely heavily on local funding and loans in the early stages. With long research and development cycles and significant financial pressure, once cash flow tightens, the liquidation process will begin. He stated: “When the government stops supporting high-risk projects, the success rate of these enterprises is extremely low, often leading to closure.” Lin Huang (pseudonym), a large electronic technology personnel in Hangzhou, mentioned that Qingke Semiconductor’s 2 billion yuan project was policy-driven investment, but actual production and research and development progress lagged far behind the plan.
According to announcements from various courts and media reports in mainland China, as of October this year, at least 9 companies in the fields of chip design, testing, and smart manufacturing have been declared bankrupt. These companies include Jiangsu Zhenxin Semiconductor Technology Co., Ltd., Shanghai Likexin Semiconductor Technology Co., Ltd., Wusheng Semiconductor Group Co., Ltd., Zhejiang Qingke Semiconductor Co., Ltd., Fujian Xirenma Joint Testing and Control Technology Co., Ltd., Sichuan Shangda Electronics Co., Ltd., Chongqing Julicheng Semiconductor Co., Ltd., Anhui Sulaima Semiconductor Co., Ltd., and Jiangxi Xianghua Semiconductor Technology Co., Ltd. Most of the cases were accepted between July and September.
The reporter found that 40% of these companies were founded in just under 3 years. Netizens commented on social media that these local investment projects have a single financial structure and once the companies face financial constraints, they find it challenging to continue operations. Some comments stated that these chip companies lack core technology and only exist for subsidies, shutting down after a few years. Others believe that China’s semiconductor resources are monopolized by heavily supported enterprises, leaving private companies with limited research and development opportunities. Some remarks pointed out that judicial liquidation is becoming the main way for the technology industry to exit.
A scholar studying industrial policies mentioned that the bankruptcy of Qingke Semiconductor is not an isolated case. “In recent years, local governments have invested heavily in chip manufacturing and testing projects, but with restrictions in the international supply chain and continued strengthening of technological blockades by the United States, many enterprises have been forced to halt due to interruptions in importing equipment and key material supplies.” He added, “With tight local finances, reduced government subsidies, and industrial funds, some projects can no longer secure further investments and can only halt operations.”
The scholar believes that most local semiconductor companies currently depend on policy support to sustain operations. However, with escalating economic pressures, these enterprises that do not see output benefits will be the first targets of cleanup as funding shrinks.
Additionally, in Fujian’s Quanzhou, Xirenma Joint Testing and Control Technology Co., Ltd. was declared bankrupt by the Quanzhou Intermediate People’s Court on September 1, with the deadline for creditors to declare claims extended to November 10. The company was once considered a key local enterprise and a representative in the sensor field. Netizens commented that local Chinese semiconductor companies generally lack core technology and rely more on government subsidies, highlighting structural issues under an administrative investment-oriented model.