China is trying hard to achieve self-sufficiency in semiconductors as US and allies roll out sweeping sanctions cutting China’s access to advanced chip making equipment
China is all set to roll out a new state-backed investment fund which plans to raise over $40 billion for furthering its semiconductor sector as global competition in chip making rises.
Expected to launch shortly, this will be one of the biggest of three funds launched by the China Integrated Circuit Industry Investment Fund, sometimes also known as the Big Fund.
Targeted to collect 300 billion yuan ($41 billion), this state-backed fund is hoping to beat records for other similar funds held in 2014 and 2019, which collected nearly 138.7 billion yuan and 200 billion yuan respectively.
Major investments from the funds will be used in the buying of equipment used in chip manufacturing, which obviously is a wise move considering sanctions from the US, Japan and Netherlands which have made it difficult for the country to access advanced chip making equipment.
Chinese President Xi Jinping has also been stressing importance on self-sufficiency in the semiconductor industry, with the need becoming even more pressing as competition toughens.
China’s finance ministry has announced a 60 billion yuan contribution to the 300 billion yuan, other contributors however are not yet revealed.
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