China’s Big Chip Fund to Exceed $47.5 Billion Goal, Adviser Says

  • The investment vehicle operates under longer 10-year timeframe
  • Beijing is trying to build a world-class semiconductor sector

May 28: China Creates $47.5 Billion Chip Fund to Boost Domestic Industry

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China’s main national chip fund should wind up raising more than the $47.5 billion originally disclosed, a senior adviser to Beijing said, reflecting the government’s resolve to close a technology gap with the US.

More state-backed firms are likely to join investors such as Industrial and Commercial Bank of China Ltd. in contributing capital, Li Ke, a member of the committee that advises the fund, told Bloomberg News. That reflects the government’s resolve to create a self-sufficient domestic semiconductor industry, said Li, who is also deputy general manager of CCID Consulting Co., an agency backed by a research arm of the Ministry of Industry and Information Technology.