China is doubling down on its plan to dominate advanced technologies of the future by setting up its largest-ever semiconductor state investment fund, according to information posted by a government-run agency.
Worth $47.5 billion, the fund is being created as the US imposes sweeping restrictions on the export of American chips and chip technology in a bid to throttle Beijing’s ambitions.
With investments from six of the country’s largest state-owned banks, including ICBC and China Construction Bank, the fund underscores Chinese leader Xi Jinping’s push to bolster China’s position as a tech superpower.
With its Made in China 2025 road map, Beijing has set a target for China to become a global leader in a wide range of industries, including artificial intelligence (AI), 5G wireless, and quantum computing.
The latest investment vehicle is the third phase of the China Integrated Circuit Industry Investment Fund. The “Big Fund,” as it is known, was officially established in Beijing on Friday, according to the National Enterprise Credit Information Publicity System.
Shares of top Chinese chipmakers have jumped after the news. Semiconductor Manufacturing International Corporation (SMIC), the world’s third largest contract chipmaker, has rallied 7% since Monday. Hua Hong Semiconductor, China’s second largest chip foundry and a supplier for Huawei, has gained 13%.
Source: CNN
