China Launches $47.5 Bn Fund To Boost Semiconductor Industry

China has set up a new investment fund aimed at advancing its semiconductor industry. The fund comes with a registered capital of 344 billion yuan (USD 47.5 billion), was officially established on May 24, 2024, according to information from the Chinese database company Tianyancha.

This initiative represents the third phase of China’s national integrated circuit industry investment fund, signaling a continued and robust commitment to bolstering its semiconductor capabilities. 

The Chinese finance ministry has emerged as the fund’s largest shareholder, holding a 17 per cent stake. 

The establishment of this fund comes at a critical time as China faces increasing pressure to reduce its dependence on foreign technology amidst ongoing global tech competition and geopolitical tensions including large tariffs from the US.