As the United States and its allies roll out sweeping sanctions, China is making concerted efforts to achieve semiconductor self-sufficiency.
China is preparing to launch a new state-backed investment fund with the goal of raising more than $40 billion to develop the country’s semiconductor industry in the face of increasing competition from abroad.
The China Integrated Circuit Industry Investment Fund, often known as the Big Fund, is planning to release three funds, with this one being among the largest.
This state-backed fund aims to raise $300 billion yuan ($41 billion), which would be more than double the sums raised by similar funds in 2014 ($138.7 billion yuan) and 2019 ($200 billion).
Since sanctions from the United States, Japan, and the Netherlands have made it impossible for the country to access modern chip production equipment, a large portion of the monies will be invested in the purchase of such equipment.
Also, as rivalry in the semiconductor industry heats up, Chinese President Xi Jinping has been emphasizing the need for greater domestic production.
The Chinese finance ministry has already confirmed a 60 billion yuan contribution, but the identities of the remaining contributors to the $300 billion total remain unknown.