To woo local chip makers, China sets up $47.5-billion fund
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.
Shares of China's major chip stocks jumped on Monday. SMIC rose up to 8.1% in Hong Kong, while Hua Hong Semiconductor Ltd climbed over 10%.
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