The Chinese government is planning to launch a large investment fund in order to support the semiconductor sector.
The fund will be the third and largest investment vehicle launched by the state-backed China Integrated Circuit Industry Investment Fund, also known as the Big Fund, which was set up in 2014 to help China achieve self-sufficiency in the semiconductor industry.
While the two previous funds launched in 2014 and 2019 raised US$18.9 billion and $27.4 billion, respectively, China is aiming to raise $40 billion for its latest investment venture.
About a fifth of the funding is expected from China’s Ministry of Finance.
The projected size of the fund indicates how seriously China considers its aim of semiconductor self-sufficiency. The news, first reported by Reuters, also comes just days after China-based smartphone manufacturer Huawei released its latest offering, the Mate 60 Pro, which uses a 7-nanometer processor powered by a chip manufactured in China.
The breakthrough comes despite a sanction on chip technology imposed on China by the US.
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