BEIJING (Reuters) – China has created a third planned state-backed investment fund to boost its semiconductor industry with registered capital of 344 billion yuan ($47.5 billion), according to state company registry data.
President Xi Jinping emphasized the need for China to achieve self-sufficiency in semiconductors. That need has grown after the United States imposed a series of export controls over the past few years, citing concerns that Beijing could use advanced chips to boost its military capabilities.
The third phase of the China Integrated Circuit Industry Investment Fund was officially launched on May 24 and registered with the Beijing Municipal Administration for Market Regulation, according to state credit reporting agency National Enterprise Credit Information Publicity System.
The third phase will be the largest of three funds launched by the China Integrated Circuit Industry Investment Fund, known as the Big Fund.
China’s Ministry of Finance is the largest shareholder with a 17% stake and paid-up capital of 60 billion yuan, according to Tianyancha, a Chinese company database company. China Development Bank Capital is the second largest shareholder with a 10.5% stake.
The Treasury did not immediately respond to a Reuters request for comment.
Seventeen more institutions are listed as investors, including five major Chinese banks: Industrial and Commercial Bank of China, Construction Bank of China (OTC:), Agricultural Bank of China (OTC:), Bank of China and Bank of Communications, each contributing . about 6% of total capital.
In September, Reuters reported that China would launch the third phase of the Grand Fund.
The first phase of the fund was established in 2014 with a registered capital of 138.7 billion yuan, and the second phase followed in 2019 with a registered capital of 204 billion yuan.
The large fund has provided financing to two of China’s largest chip factories, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, as well as Yangtze Memory Technologies, a flash memory maker, and a number of smaller companies and funds.
One of the main areas the fund’s third phase will focus on is chip manufacturing equipment, Reuters reported in September. In addition, the Grand Fund is considering hiring at least two institutions to invest stage three capital.
($1 = 7.2449 yuan)