Third Phase China Integrated Circuit Industry Investment FundThe company, also known as “Big Fund,” was established last Friday with registered capital of 344 billion yuan ($47.5 billion), according to information published on Monday by China company database service Qicao.
Big Fund III has 19 equity investors, with China’s Ministry of Finance holding a 17% stake, state-owned China Development Bank Capital holding 10% and state-owned asset management company holding a 19% stake. Shanghai Kokusei Group Eight percent.
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Biden’s China Tech Policy Goals: A Decade of Handicaps
Biden’s China Tech Policy Goals: A Decade of Handicaps
The size of this new fund is: Chips and sciencewas enacted by the President of the United States Joe Biden In 2022, the Chinese government A “whole of country” approach To build a self-sufficient semiconductor industry and overcome Washington’s export controls that are an obstacle to this sector.
Launched in 2014The Big Fund is Beijing’s main investment vehicle for supporting the development of the domestic semiconductor industry, particularly in the areas of chip design, manufacturing, packaging, equipment and materials. It is a major investor in SMIC and China’s memory chip giants. Yangtze Memory TechnologiesBoth countries are on the US government’s trade blacklist.
Meanwhile, China’s semiconductor industry continues to demonstrate strength in the production of older generation semiconductors. Legacy Chips They are widely used in automobiles, home appliances and a range of consumer electronics. China’s global share of mature semiconductor manufacturing capacity covering technologies prior to 28 nanometers is expected to reach 39% by 2027, up from 31% in 2023, according to market research firm TrendForce.
Last December, the United States moved to investigate U.S. companies’ procurement of legacy chips made in China. This sparked a backlash from Beijing.accused Washington of “weaponizing” trade issues.
This prompted condemnation from the United States and Europe and further exacerbated geopolitical tensions. China’s excess industrial capacity It has stifled our own manufacturing industry.
Despite Beijing’s efforts to bolster its domestic semiconductor industry, major manufacturers like SMIC remain heavily reliant on foreign chip-making equipment, such as from Dutch suppliers. ASML.
