China is intensifying its efforts to lead in advanced technologies by launching its largest semiconductor state investment fund yet, valued at $47.5 billion.
This move comes amid US restrictions on chip exports to China, part of a strategy to limit Beijing’s technological advancements.
The fund, backed by six major state-owned banks including ICBC and China Construction Bank, reflects President Xi Jinping’s drive to elevate China as a technology powerhouse.
China’s Made in China 2025 initiative outlines ambitions to excel in industries like artificial intelligence, 5G, and quantum computing.
The newly established fund, known as the “Big Fund,” is the third phase of the China Integrated Circuit Industry Investment Fund.
It was officially inaugurated in Beijing, signaling China’s commitment to bolstering its semiconductor sector.
This development has led to increased stock prices for top Chinese chipmakers such as Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor, which supply to companies like Huawei.
The first phase of the fund was initiated in 2014 with a capital of 138.7 billion yuan ($19.2 billion), followed by the second phase five years later with 204.1 billion yuan ($28.2 billion).
The investments are aimed at elevating China’s semiconductor industry to global standards by 2030, focusing on chip manufacturing, design, equipment, and materials, as outlined by the Ministry of Industry and Information Technology in 2014.
Source-CNN
