A worker controls a laser trimming machine at the chip resis
A worker controls a laser trimming machine at the chip resistors production line in Yageo Corp.'s plant in Suzhou, Jiangsu province, China, on Monday, Oct. 29, 2007.  Photograph by Kevin —Bloomberg via Getty Images

China Is Becoming a Semi-Conductor Superpower

Updated: Mar 25, 2016 4:58 PM UTC

China is making progress on its plan to become a global superpower in semi-conductor production.

The country is investing $24 billion toward developing a homegrown semi-conductor industry, and this Monday, a Chinese-owned chip maker XMC will open its first plant dedicated to making a widely-used type of the chips, according to The Wall Street Journal.

The $24 billion will be invested in the creation of two chip-manufacturing plants, as well as facilities for suppliers.

Chinese companies make up only a small slice of semi-conductor manufacturers—but that's something the Chinese government is moving to change as the economy transitions to higher-value industries. In 2015, the government announced it wanted to 70% of semi-conductors in China to be made domestically.