Reports from China's Ministry of Industry and Information Technology

China Launches $47.5 Billion Big Fund III to Boost Semiconductor Industry

May 27, 2024, 09:56 AM

China has launched its largest-ever state-backed investment fund, known as the Big Fund III, with $47.5 billion to boost its semiconductor industry. This initiative, which marks the third phase of China's national integrated circuit industry investment fund, was officially set up on May 24 and aims to propel the domestic chip industry amid rising tensions with the United States. The fund, registered with a capital of 344 billion yuan, is primarily financed by China's central government and state-owned banks, including significant contributions from China Construction Bank and Bank of China, each investing 21.5 billion yuan. The fund will focus on investing in large semiconductor manufacturers and AI-related chips, including high bandwidth memory (HBM). This move is part of China's broader strategy to achieve self-sufficiency in semiconductor technology and reduce dependency on foreign suppliers, particularly in light of US restrictions on advanced chip sales to China.