China is reportedly set to launch a new state-backed investment fund that aims to raise about $40 billion for its semiconductor sector. The fund will be managed by the China Integrated Circuit Industry Investment Fund, also known as the Big Fund. It is likely to be the biggest of three funds launched by the Big Fund, with the other two raising 138.7 billion yuan ($20 billion) and 200 billion yuan ($29 billion) respectively.
The new fund will focus on investing in equipment for chip manufacturing, as China seeks to catch up with the US and other rivals in the semiconductor industry. The country is currently heavily reliant on imports for chips, and the US-China trade war has made it more difficult for Chinese companies to obtain advanced chipmaking technology.
The launch of the new fund is a sign of China’s commitment to developing its semiconductor industry. The government has made it a priority to achieve self-sufficiency in chips, and the new fund is a major step towards that goal.
The launch of the fund is also likely to have implications for the global semiconductor industry. China is a major market for chips, and the new fund could help to boost demand for chips from Chinese companies. This could benefit chipmakers in the US and other countries.
However, the fund could also pose a challenge to the global semiconductor industry. If China is able to achieve self-sufficiency in chips, it could become a major competitor to US and other chipmakers. This could lead to higher prices for chips and other disruptions to the global semiconductor supply chain.
The launch of the new fund is a significant development in the global semiconductor industry. It will be interesting to see how the fund affects the industry in the years to come.