China sets up 41 billion investment fund to develop national

China sets up $41 billion investment fund to develop national semiconductor industry

Sources Reuters It has been announced that the Chinese government will set up a new investment fund worth the equivalent of 41 billion US dollars, which will go towards the development of the national semiconductor industry. The task of the subsidy recipients will not only be to withstand the sanctions, but also to catch up with foreign competitors in terms of technological development.

    Image source: Caixin Global

Image source: Caixin Global

According to the source, the amount of funds managed by the fund exceeds the figures of the previous two funds with a similar purpose. The first was founded in 2014 and had around $19 billion at its disposal, while the second already had around $27 billion at its disposal in 2019. The recipients of these funds are believed to include SMIC and HSMC, which have manifested themselves to varying degrees in the contract chip makers, as well as the largest solid state memory maker in China – YMTC. The funds were replenished directly from the state treasury, as well as with the participation of large state-owned enterprises of the PRC.

It is noteworthy that since 2021 the management of SINO-IC Capital, which managed the funds of the previous two funds, has been under investigation and suspected of misappropriation of funds and corruption, but this does not prevent the PRC authorities from shutting down this organization to be kept on the list of those who have access to third fund resources. However, at least one other of these organizations will have similar powers. The Chinese Ministry of Aerospace is mentioned as one of them, since it could be interested in the development of the domestic semiconductor industry. The PRC Ministry of Finance’s contribution to the new fund can be estimated at US$8.2 billion.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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