China to invest over 7 trillion yen to promote domestic semiconductor industry
It has been revealed that China has raised 340 billion yuan (approximately 7.36 trillion yen) from the Ministry of Finance, state-owned banks, and others for a semiconductor industry investment fund in an effort to strengthen self-sufficiency in the semiconductor industry.
China sets up third fund with $47.5 billion to boost semiconductor sector | Reuters
Report: China sets up $47.5B fund to boost its semiconductor sector - SiliconANGLE
Tech war: China doubles down on semiconductor self-sufficiency drive with US$47.5 billion Big Fund III | South China Morning Post
https://www.scmp.com/tech/tech-war/article/3264296/tech-war-china-doubles-down-semiconductor-self-sufficiency-drive-us475-billion-big-fund-iii
China's Integrated Circuit Industry Investment Fund was established in 2014 with capital of 138.7 billion yuan (approximately 3 trillion yen), and raised 240 billion yuan (approximately 5.2 trillion yen) in its second round in 2019. This is its third round.
The investors include the Ministry of Finance of the People's Republic of China (17%), China Development Bank Holding Company (10%), Shanghai Guosheng Group, which manages state assets (7%), China Construction Bank (6.25%), Bank of China (6.25%), Agricultural Bank of China (6.25%), China Bank of Communications (5.81%), China Post Savings Bank (2.33%), Industrial and Commercial Bank of China, and China Tobacco Corporation, among 19 other companies.
One of the areas the fund will focus on is the equipment needed for semiconductor manufacturing. In particular, EUV equipment, which is essential for semiconductor manufacturing, is almost exclusively supplied by ASML of the Netherlands , and China used to purchase equipment from ASML, but sales to China have been suspended at the request of the United States.
US asks semiconductor lithography equipment maker ASML to stop selling to China - GIGAZINE
The size of this fund is comparable to the $53 billion (approximately 8.31 trillion yen) set aside for the construction of semiconductor manufacturing plants under the CHIPS and Science Act enacted by the Biden administration in 2022. The South China Morning Post points out that this shows the Chinese government's approach to building a self-sufficient semiconductor industry as a nation and overcoming US export restrictions.
Although China's semiconductor industry lags behind in terms of cutting-edge technology due to the lack of access to the latest EUV equipment, it is widely used in areas such as automobiles and home appliances where older generation chips are sufficient. China's share of the 28nm scale and above semiconductor industry is expected to reach 31% in 2023 and 39% in 2027.
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