2023-09-05 08:46:03
China wants to support its chip industry with billions. To this end, a new state-backed fund worth more than 40 billion dollars (37 billion euros) is to be launched, as two people familiar with the plans told the Archyde.com news agency on Tuesday. The authorities have therefore already given the green light. An official statement was not immediately available.
The People’s Republic is thus stepping up its efforts to catch up with the USA and other competitors. President Xi Jinping wants China to be able to supply itself with semiconductors. The US has introduced a number of export control measures in recent years out of concern that Beijing could use high-performance chips to upgrade its military. In October, the US launched a sweeping package of sanctions barring China from access to sophisticated chip-making machinery. Japan and the Netherlands took similar measures.
According to the insiders, the Treasury Department wants to provide most of the funds for the fund. In other funds, financially strong state-owned companies such as China Development Bank Capital, China National Tobacco Corporation and China Telecom were brought on board as financiers. There are already two other funds that provide funding for the chip industry.
The companies Semiconductor Manufacturing International and Hua Hong Semiconductor as well as Yangtze Memory Technologies and a number of smaller companies benefited from this. Despite these investments, the Chinese chip industry has struggled to become a global leader, especially in advanced chips. These are necessary in the field of artificial intelligence, for example.
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