China to Funnel $29 Billion Towards its Chip Ambitions
- Second of its kind, the fund is mainly backed by state capital
- China wants to become self-reliant in chip-making and design
Photographer: Qilai Shen/Bloomberg
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China has formally created a $29 billion state-backed fund to invest in the semiconductor industry, advancing its goal of reducing a dependency on U.S. technology.
China is the world’s biggest chip importer, and the long-awaited 204 billion yuan ($28.9 billion) fund will fuel Beijing’s efforts to forge its own semiconductor supply chain from chip design to manufacturing. It will play a key role in steering overall strategy and investment in the integrated circuit sector, which includes processors and storage chips used in smartphones and datacenters.