The People’s Republic wants to become self-sufficient in the context of export restrictions – China Integrated Circuit Industry Investment Fund enters its third phase.
The China Integrated Circuit Industry Investment Fund, with which the People’s Republic seeks to become self-sufficient in semiconductor production, has amassed $47.5 billion (344 billion yuan) in its third iteration, according to Bloomberg. The fund, also known as Big Fund 3, is backed by the central government and various state-owned banks and enterprises. It marks China’s largest single investment in the sector to date. In comparison, the first two phases ran from 2014 to 2019 and 2019 to 2024 and collected $21.8 billion and $29 billion, respectively. The money will finance domestic semiconductor producers to become less dependent on imports.
The People’s Republic aims to become 70 percent self-sufficient in chips by 2025. Big Fund 3 overshot early estimates of $40 billion made at the official announcement of the third phase in September last year (we reported). In October 2022, the United States announced export restrictions to restrict China’s access to advanced chips and chip technologies. The measures have since been adjusted, and Japan and the Netherlands have joined the U.S. steps.
Photo: iStock/Trifonov_Evgeniy
