Tech war: Beijing sets up US$1.2 billion semiconductor fund as China splurges on chips
The state-owned Zhongguancun Development Group established the Beijing Integrated Circuit Industry Investment Fund on Tuesday with a registered capital of 8.5 billion yuan (US$1.2 billion), according to information available on Chinese corporate database Qichacha.
The Beijing government started the Zhongguancun firm in 2010, and the fund will be run by a subsidiary registered as Beijing Zhongguancun Capital Fund Management, according to Qichacha.
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There’s a global semiconductor shortage and this is why it matters
There’s a global semiconductor shortage and this is why it matters
The new fund in Beijing joins a slew of initiatives from local Chinese governments aimed at bolstering the country’s chip sector. The most notable among them is the China Integrated Circuit Industry Investment Fund, a national effort known as the “Big Fund”.
Massive state subsidies have contributed to the growth of China’s semiconductor industry, but have also led to an overcapacity in production, according to a report published earlier this month by the Information Technology and Innovation Foundation (ITIF), a Washington-based think tank.
Meanwhile, Semiconductor Manufacturing International Corporation, China’s largest chip foundry, still lags behind Taiwan Semiconductor Manufacturing Company (TSMC) by five years, ITIF said. TSMC is responsible for manufacturing an estimated 90 per cent of the world’s most advanced chips.
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