CNBC AI News, July 8 – The highly anticipated restructuring of Jiangsu Times Core-Tech Semiconductor Co., Ltd. (AMS), once touted as China’s last hope for a 300mm wafer fab, has officially collapsed. The court-appointed administrator announced that the proposed restructuring investor, Huaxinjiejian Integrated Circuit Manufacturing (Guangdong) Co., Ltd., has defaulted on its obligations, marking a definitive end to the revival efforts for this beleaguered semiconductor project.
In a dramatic turn of events, Beijing Times Fullcore Technology Co., Ltd. (AMT), a former shareholder of AMS, has issued a statement detailing the intricate legal and financial unraveling of the project. The company clarified its position based on the prevailing bankruptcy proceedings and relevant legal frameworks.
Here’s a breakdown of the key developments:
1. Valuation and Equity Write-Off: As per an asset appraisal report dated 2023 and a bankruptcy liquidation announcement from the Huai’an Intermediate People’s Court, AMS was found to be insolvent. This officially led to the zeroing out of shareholder equity for its previous stakeholders, including Huaian Huaishu Technology Development Co., Ltd. and AMT.
2. Transfer of Shares for Restructuring: On September 25, 2024, following the administrator’s strategy to bring in a restructuring investor and with the approval of a revised restructuring plan by the third creditors’ meeting, AMS’s equity was legally transferred to Huaxinjiejian Integrated Circuit Manufacturing (Guangdong) Co., Ltd. at no cost. This move was sanctioned by the court.
3. Default and Termination of Restructuring: The situation took a critical turn on June 13, 2025, when Huaxinjiejian Integrated Circuit Manufacturing (Guangdong) Co., Ltd. committed a material breach of its agreement. Consequently, the administrator rescinded the Restructuring Investment Agreement and terminated the restructuring process.
To facilitate the continuation of AMS’s operations, albeit under new directorship, AMT’s previous equity stake will not revert to its pre-bankruptcy status. Instead, Huaian Huaishu Technology Development Co., Ltd. will assume full equity and appoint the Chairman of AMS. This arrangement is a specialized measure within the bankruptcy proceedings and complies with China’s Enterprise Bankruptcy Law and court rulings.
In light of these events, AMT has communicated the following:
1. Continued Support: AMT affirms its commitment to support AMS in its ongoing efforts and will cooperate with the administrator to advance the remaining procedures.
2. Exit from Shareholder Status: Effective from the date of the zero-cost equity transfer to Huaxinjiejian Integrated Circuit Manufacturing (Guangdong) Co., Ltd., AMT has officially exited its role as a shareholder of AMS. As such, it will no longer bear any shareholder responsibilities or related legal obligations.
The ambitious AMS project, with a planned total investment of RMB 13 billion, aimed to establish a 300mm wafer fabrication facility capable of producing 100,000 pieces of phase-change memory annually. It even acquired a highly coveted ASML lithography machine valued at RMB 143 million. However, mounting debts and a series of operational challenges plunged the project into disarray, famously leading to an unusual period where the factory grounds were reportedly used for raising livestock.
In July 2023, the Huai’an Intermediate People’s Court formally accepted the bankruptcy liquidation case for AMS and initiated the public auction of its lithography equipment.
By February 2024, the court ruled for AMS’s restructuring, with Huaxinjiejian Integrated Circuit Manufacturing (Guangdong) Co., Ltd. acquiring 100% equity. The intention was to transform AMS into a semiconductor foundry capable of producing chips like DDIC display driver ICs, PMIC power management ICs, RF radio frequency chips, and high-reliability memory chips.
AMT’s exit from AMS shareholder status in November 2024 was accompanied by a reiterated commitment to support the restructuring, with hopes that the new investors would inject the necessary capital, fulfill their obligations, settle debts, and restart factory operations.
In recent years, AMS has faced enforcement actions totaling a staggering RMB 863 million, involving claims from equipment suppliers, contractors, logistics firms, and former employees.
The definitive failure of the restructuring plan signals a final nail in the coffin for what was considered China’s last unfinished 300mm wafer fab, marking a somber conclusion to a project that carried significant hopes for the nation’s semiconductor ambitions.
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