China Launches $47.5 Billion Fund to Boost Semiconductor Industry, Achieve Self-Sufficiency

May 27, 2024, 04:44 AM

China has launched a new state-backed investment fund worth $47.5 billion to boost its semiconductor industry. This fund, the third phase of the national integrated circuit industry investment fund, has a registered capital of 344 billion yuan. The initiative aims to enhance China's self-sufficiency and self-resilience in chip manufacturing as the country seeks to catch up with the US and other global rivals. The Chinese finance ministry is the largest shareholder in this fund, holding a 17% stake. One of the primary investment areas will be equipment for chip manufacturing. The fund was officially set up on May 24, 2024, and has already led to a rally in Chinese semiconductor companies in Hong Kong.