China has established its third planned state-backed investment fund to enhance its semiconductor industry, with a registered capital of 344 billion yuan ($47.5 billion), according to a filing with a government-run company registry.
The hundreds of billions of yuan invested in the sector highlight President Xi Jinping’s drive for China to achieve self-sufficiency in semiconductors. This goal has gained renewed urgency following a series of export control measures imposed by the U.S. in recent years, citing concerns that Beijing could use advanced chips to enhance its military capabilities.
Chinese chip shares rose in response, with the CES CN Semiconductor Index rallying more than 3%, marking its largest one-day gain in over a month.
The third phase of the China Integrated Circuit Industry Investment Fund, also known as the “Big Fund,” was officially established on May 24 and registered under the Beijing Municipal Administration for Market Regulation, according to the National Enterprise Credit Information Publicity System.
This third phase is the largest of the three funds launched by the Big Fund. The Chinese finance ministry is the largest shareholder, holding a 17% stake and contributing 60 billion yuan in paid-in capital, according to Tianyancha, a Chinese company information database. China Development Bank Capital is the second-largest shareholder with a 10.5% stake.
Seventeen other entities are listed as investors, including five major Chinese banks: Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications, each contributing around 6% of the total capital.
