China sets aside $47 billion to boost its chip industry

China established a new investment fund to boost its semiconductor industry, according to official documents. The Chinese finance ministry and six major banks are key investors in the fund, which set aside CNY 344 billion (over $47 billion) for chip manufacturing equipment, revealed Reuters.

This is the third phase of the China Integrated Circuit Investment Fund, which was officially established on Friday, May 24. It has been the biggest fund since 2014 and is known locally as the "Big Fund." According to Tianyancha, a Chinese company information database organization, the finance ministry is the key investor with a 17% stake and paid-in capital of CNY 60 billion.

The second-largest shareholder is China Development Bank Capital, with a 10.5% share. Five more banks, each contributing around 6% of the total capital, are the Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications.

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The Big Fund has already provided financing for SMIC and Hua Hong Semiconductor, two of China's biggest chip foundries. The commitment of hundreds of billions of yuans is a sign of the Asian country's drive to achieve self-sufficiency in the advanced chips field, which the United States is once again targeting through export control measures.

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