China officially launched a new multibillion-dollar jet engine conglomerate with almost 100,000 employees over the weekend, as Beijing seeks to become an aerospace power and compete with the likes of Rolls-Royce and General Electric Corp (GE).
The Aero Engine Corp of China (AECC, 中國航發) has registered capital of 50 billion yuan (US$7.5 billion), and previous reports said it would incorporate subsidiaries of a series of state-owned firms, including the Aviation Industrial Corp of China (AVIC, 中國航空工業集團).
Chinese President Xi Jinping (習近平) said founding the company was a “strategic move” to make China an aviation power and modernise the military, Xinhua news agency reported.
China does not make large commercial jet engines of its own and its narrow-body airliner, the C919, is powered by engines from CFM International, a venture between GE of the US and France’s Safran.
The best aircraft in China’s air force use engines built in Russia, Xinhua said.
Beijing is looking to change that with the creation of a new national champion in the field as it seeks the prestige of having its own aviation sector.
Leaders have targeted the manufacture of high-technology products such as jet engines as a means to transform the world’s second-largest economy and make its firms more competitive with advanced foreign rivals in aerospace, biotechnology, alternative energy and other sectors.
Chinese Premier Li Keqiang (李克強) said in written comments that making “breakthroughs” in advanced aircraft engines would have great value in strengthening the military and manufacturing ability of the country.
Xinhua cited him urging indigenous innovation to make AECC a world leader in aero-engines.
The new firm will employ 96,000 employees and be headquartered in the capital, reports said, with China’s State Council and the Beijing City Government investing in it.
However, industry executives say it could take years for the firm to develop the engines to power big commercial jets.
This summer China’s homegrown regional jet, the ARJ21, made by the Commercial Aircraft Corp of China (中國商用飛機公司), made its first commercial flight after years of delays, though its quality and reliability have yet to be established.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS