China Creates $47.5 Billion Chip Fund Amid Semiconductor Battle With Joe Biden
By Jace Dela Cruz
May 28, 2024 12:59 AM EDT
© 2024 Copyright Venture Capital Post. All Rights reserved.
May 28, 2024 12:59 AM EDT
China has launched its largest semiconductor investment fund to date to boost its domestic chip industry amid escalating tensions with the United States.
(Photo : NOEL CELIS/AFP via Getty Images)
According to Fortune, the third phase of the National Integrated Circuit Industry Investment Fund, known as Big Fund III, has accumulated 344 billion yuan ($47.5 billion) from the central government and several state-owned banks and enterprises.
This initiative marks a renewed effort by Chinese President Xi Jinping's administration to achieve self-sufficiency in semiconductor production. The move comes as the Biden administration launched extensive restrictions on China's access to advanced chips and chipmaking equipment.
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The US has imposed a series of export control measures to restrict China's access to advanced AI chips made with US inputs. The US is also urging allies like South Korea, Japan, the Netherlands, and Germany to further tighten restrictions on China's access to semiconductor technology.
In response, China is now enhancing its legacy chip production capabilities. The creation of Big Fund III is expected to support this project, fostering a network of chip companies like Huawei for advancements in semiconductor technology.
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