China Launches $47.5 Billion Big Fund III on May 24 to Boost Semiconductor Industry

May 27, 2024, 06:12 AM

China has launched its largest-ever state-backed investment fund, valued at $47.5 billion, to boost its semiconductor industry. This initiative, known as the Big Fund III, represents the third phase of China's national integrated circuit industry investment fund. The fund, which has a registered capital of 344 billion yuan, was set up on May 24 and aims to propel the development of the domestic chip industry and reduce dependency on foreign technology, particularly from the US. China's finance ministry is the biggest shareholder with a 17% stake in the fund. The investment will focus on equipment for chip manufacturing, as part of China's broader strategy to achieve self-sufficiency and self-resilience in the semiconductor sector amidst growing US restrictions. The move is part of a larger global trend, with nearly $380 billion earmarked by governments worldwide in the race for chip supremacy. Chinese semiconductor companies rallied in HK following the announcement.