China closing in on massive new chip fund in bid to dominate US semiconductor industryMay 8, 2018 9:03 am
China’s government has made technological independence from the United States one of its highest priorities. And now, it appears to be putting its money where its messaging has been.
According to the Wall Street Journal, China is close to finalizing a $47 billion investment fund that would finance semiconductor research and chip startup development. The fund, formally the China Integrated Circuit Industry Investment Fund Co., appears to be underwritten predominantly by government capital sources.
Such a fund has been rumored for months, with the size of the fund ranging widely. Just two weeks ago, Reuters had reported that the fund would be $19 billion, while Bloomberg reported $31.5 billion two months ago. The exact number appears to be under intense negotiation among the Chinese leadership, and is also responsive to the increasingly tense trade negotiations with the United States.
If the $47 billion number pans out, it would be identical in size to a
$47 billion fund that was financed by Tsinghua University, China’s leading engineering university, to spur the development of an indigenous semiconductor industry back in 2015.
More details at: https://finance.yahoo.com/news/china-closing-massive-chip-fund-165713782.html