Beijing seeks to supply itself with semiconductors amid tough restrictions imposed by Washington.
China will launch a new state investment fund that plans to raise about $40 billion to develop the semiconductor sector. Reuters reported this on September 5, citing sources familiar with the matter.
It is noted that it is probably the largest of the three funds of Beijing in the integrated circuit industry.
“Its target of 300 billion yuan ($41 billion) exceeded those of 2014 and 2019, raising 138.7 billion yuan and 200 billion yuan, according to government reports,” the article said.
One of the main areas of investment is the equipment for the production of microcircuits.
The Chinese Ministry of Finance plans to allocate 60 billion yuan, the rest of the participants are still unknown.
The fundraising process is expected to take several months, and it is not yet clear when exactly the third fund will be launched.
Sponsors of the former two include the Ministry of Finance and large state-owned enterprises such as China Development Bank Capital, China National Tobacco Corporation and China Telecom.
Over the years, the China Integrated Circuit Industry Investment Fund, also known as the Big Fund, has financed two of the largest chip factories, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, as well as Yangtze Memory Technologies, a flash memory manufacturer, and some small companies and funds.
Despite the investment, China’s chip industry cannot claim a leading role in the global supply chain.
Recall that in October 2022, the United States introduced a large-scale package of sanctions that limited China’s access to advanced equipment for the production of chips. Japan and the Netherlands have taken similar measures.
Source: korrespondent
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