China Sets Up $47.5 Billion Semiconductor Fund to Boost Domestic Chip Industry

China has established its largest-ever semiconductor investment fund, amassing 344 billion yuan ($47.5 billion) to propel the development of the domestic chip industry. It is Beijing’s latest effort to achieve self-sufficiency in the semiconductor sector as the US seeks to restrict its growth.

The third phase of the National Integrated Circuit Industry Investment Fund, also known as Big Fund III, has been set up with contributions from the central government and various state-owned banks and enterprises. The largest shareholder in the fund is China’s Ministry of Finance, with investment firms owned by local governments in Shenzhen and Beijing also contributing.

The fund is expected to boost the development of China’s semiconductor industry, particularly in the areas of chip design, manufacturing, and packaging. It is a major investor in Semiconductor Manufacturing International Corp (SMIC), mainland China’s biggest contract chip maker, and Chinese memory chip giant Yangtze Memory Technologies Co.

Read more: finance.yahoo.com