47.5 billion dollar ‘chip fund’ from China
China has established the country’s largest semiconductor investment fund to support the development of the chip industry and ensure its self-sufficiency against US efforts to restrict growth momentum in the sector.
China has established the country’s largest semiconductor investment fund to support the semiconductor industry.
According to Tianyancha, a virtual platform with official company registration information, the third phase of the ‘National Integrated Circuit Industry’ Investment Fund will raise 344 billion yuan (47.5 billion yuan) from the central government and various state-owned banks and enterprises, including the Industrial & Commercial Bank of China. billion dollars) collected. The fund was established on May 24.
The latest investment reveals the efforts of the Xi Jinping government in China to establish its own semiconductor industry as tensions with the United States increase.
In the USA, the Biden government imposes restrictions on China’s advanced chip purchases to slow down China’s technological development, while it also wants the Netherlands, Germany, Japan and South Korea to increase export controls against China.
After the news, shares of China’s largest chip manufacturer SMIC rose by 8.1 percent in Hong Kong. Shares of its rival, Hua Hong Semiconductor, also increased by more than 10 percent.