China wants to launch a $40,000 fund to support chip production – Kommersant
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China is planning to launch a new state-backed investment fund that will invest in the development and production of semiconductors. Writes about it Reuters with reference to sources. The total expected investment through the fund is 300 billion yuan ($41 billion). Reuters sources say the new fund is expected to receive final approval from Chinese authorities in the next few months.
China is pouring money into semiconductor manufacturing as the US and some of its allies take drastic measures to curb its ability to build next-generation chips. In particular, the United States prevents the import of technology and equipment necessary for this to China. Earlier it was reported that China in June and July sharply increased import of such equipment before the Netherlands and Japan imposed restrictions for his supplies. According to Reuters, part of the funds from the new fund will be directed precisely to the development of the production of equipment for the manufacture of chips.
The new fund is larger than previous initiatives of its kind: in 2014 and 2019, China already launched funds to invest in semiconductors worth 140 billion yuan ($19 billion) and 200 billion yuan ($27 billion), respectively. Investments from the funds were received by manufacturers of semiconductors and components for them, such as Semiconductor Manufacturing International Corporation, Hua Hong Semiconductor, Yangtze Memory Technologies.
According to agency sources, the Chinese Ministry of Finance is going to invest 60 billion yuan ($8.2 billion) in the new fund, it is not known who else will invest in the fund. The past two funds were funded by state-owned corporations, including China Development Bank Capital, China National Tobacco Corporation and China Telecom. The fund will launch the same China Integrated Circuit Industry Investment Fund, known as the Big Fund, that launched the previous two funds, sources said. The Chinese government and Big Fund did not respond to requests from Reuters.
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