China presents mega semiconductor investment fund to reduce dependence on foreigners
Date
5/27/2024 5:42:17 AM
(MENAFN) In a significant move aimed at bolstering its domestic Semiconductor manufacturing capabilities, China has unveiled its largest investment fund dedicated to the semiconductor sector. This initiative underscores China's determination to mitigate reliance on foreign technology, particularly in the face of escalating US restrictions on advanced technology exports.
According to a report by Bloomberg News Agency, the newly established fund, representing the third phase of the National Investment Fund for Integrated Circuits, boasts an impressive capital of 344 billion yuan (USD47.5 billion). The fund draws support from the Chinese central government along with several state-owned banks and institutions, including the Industrial and Commercial Bank of China.
Official registration data from the Tanyansha platform, which publishes company information in China, confirms the establishment of the fund, with the Chinese Ministry of Finance emerging as its largest shareholder. Additionally, investment entities owned by local governments in Shenzhen and Beijing are significant contributors to the fund's capital.
Notably, the involvement of the Shenzhen government in financing multiple chip factories in Guangdong province highlights China's strategic efforts to reduce reliance on imported chips, particularly in supporting domestic technology giants like Huawei. The initiative aims to enhance Huawei's autonomy in the face of recent US restrictions on chip purchases from American companies such as Qualcomm and Intel.
This latest development comes in the wake of heightened tensions between the US and China over technology trade, with recent actions by the US government exacerbating concerns regarding access to critical components for Chinese tech companies. The establishment of this substantial investment fund signals China's resolve to bolster its semiconductor industry's capabilities and reduce dependency on foreign suppliers, aligning with broader strategic goals of technological self-sufficiency and innovation.
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