China closes in on second semiconductor fund worth $19bn
The National Integrated Circuitry Investment Fund, China’s state-backed semiconductor fund also known as the “Big Fund”, is close to reaching $19bn in investment.
The new fund, for China’s domestic chip sector, is set to close at $18.98bn. The state has been working on cutting its reliance on imports for its semiconductor production, amid trade uncertainties with the US.
Recent US sanctions on ZTE have spurred China on to boost its local chip market. The fund will welcome foreign investment, and since on its first round the “Big Fund” totalled $22bn in investment, it seems hopeful that the target this time will be reached.
The US Department of commerce recently banned US companies from selling smartphone parts and other telecoms equipment to ZTE, a leading Chinese manufacturer and one of the largest globally in the telecoms space.
According to Reuters: “China is heavily reliant on imported chips, however, despite making the sector a property under a push by President Xi Jinping to boost China’s own high-tech sectors, from robotics to electric cars.”
The main manager for both the first and second funds is CDB Capital Corp, which will be investing in this round.