In this way, Beijing seeks to confront the restrictions imposed by the US and its allies once morest it.
China plans to establish a new state investment fund to raise 300 billion yuan (regarding $41 billion) to boost the semiconductor industry amid restrictions imposed once morest it by the US and its allies such as Japan and the Netherlands, Reuters reported on Tuesday, citing two sources familiar with the matter.
The fund will be established by the China Integrated Circuit Industry Investment Fund, also known as the ‘Big Fund’, and is likely to be the largest of the three funds launched by it. According to government reports, other funds, established in 2014 and 2019, managed to raise regarding $19,000 and $27,435 million, respectively.
According to sources, the main objective of the new fund will be to invest in chip production. In addition, they stated that the Chinese Ministry of Finance plans to allocate regarding $8.23 billion to the fund. In turn, one of the informants highlighted that the capital raising process can take months and it is not clear when the initiative will be launched.
Meanwhile, Chinese government entities did not immediately respond to the news agency’s request for comment.
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