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China Allocates $47 Billion to Strengthen Its Semiconductor Industry

  • Updated: 27 May 2024
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China sets aside $47 billion to boost its chip industry

China has started a new investment fund to help its semiconductor industry grow, according to official documents. The Chinese finance ministry and six big banks are major investors in the fund, which has set aside 344 billion yuan (over $47 billion) for making chip manufacturing equipment, Reuters reported.

China sets aside $47 billion to boost its chip industry

This is the third phase of the China Integrated Circuit Investment Fund, established on Friday, May 24. It's the biggest fund since 2014 and is known as the "Big Fund." According to Tianyancha, a Chinese company information database, the finance ministry is the main investor with a 17% share and has invested 60 billion yuan.

The second-largest investor is China Development Bank Capital, with a 10.5% share. Five more banks, each contributing around 6% of the total, 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 given money to SMIC and Hua Hong Semiconductor, two of China's biggest chip makers. The large amount of money invested shows China's effort to become self-sufficient in making advanced chips, despite the United States' export control measures.