China Creates $47.5 Billion Chip Fund
State-owned banks and firms are among the major shareholders of the fund.
China tries to buy tech breakthroughs with heavy investment
Tweet on China’s state fund
China has set up the country’s largest-ever semiconductor investment fund to propel the development of the domestic chip industry, via Bloomberg#chip #semiconductor #china https://t.co/AWQrkEjrAA
— The_Journalbiz (@the_journalbiz) May 27, 2024
Bloomberg news tweet
China has set up the country’s largest-ever semiconductor investment fund to propel development of the domestic chip industry, the latest effort from Beijing to achieve self-sufficiency as the US seeks to restrict its growth.
The third phase of National Integrated Circuit Industry Investment Fund has amassed 344 billion yuan ($47.5 billion) from the central government and various state-owned banks and enterprises, including Industrial & Commercial Bank of China Ltd., according to Tianyancha, an online platform that aggregates official company registration information. The fund was incorporated on May 24.
The latest investment vehicle, known as Big Fund III, underscores a renewed push from Xi Jinping’s government to build its own semiconductor industry as tensions with the US escalate. The Biden administration has imposed sweeping restrictions on China’s ability to buy advanced chips and chipmaking equipment and is now urging allies — including the Netherlands, Germany, South Korea, and Japan — to further tighten curbs on China and plug holes in existing export controls.
