China sets up third fund with $47.5 bln to boost semiconductor sector

China has set up its third planned state-backed investment fund to boost its semiconductor industry, with a registered capital of 344 billion yuan ($47.5 billion), according to a filing with a government-run companies registry. The hundreds of billions of yuan invested in the sector puts into perspective President Xi Jinping’s drive to achieve self-sufficiency for China in semiconductors. That commitment has taken on renewed urgency after the U.S. imposed a series of export control measures over the last couple of years, citing fears Beijing could use advanced chips to boost its military capabilities. Chinese chip shares rose, with the CES CN Semiconductor Index rallying more than 3% and set to log the biggest one-day gain in more than a month. The third phase of the China Integrated Circuit Industry Investment Fund was officially established on May 24 and registered under the Beijing Municipal Administration for Market Regulation, according to the National Enterprise Credit Information Publicity System, a government-run credit information agency. The third phase will be the largest of the three funds launched by the China Integrated Circuit Industry Investment Fund, known as the “Big Fund.” China’s finance ministry is the biggest shareholder with a 17% stake and paid-in capital of 60 billion yuan, according to Tianyancha, a Chinese companies information database company. China Development Bank Capital is the second-largest shareholder with a 10.5% stake. The Ministry of Finance didn’t immediately reply to Reuters request for comment Seventeen other entities are listed as investors, including five major Chinese banks: Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications, with each contributing around 6% of the total capital. Reuters reported in September that China would launch the third phase of the Big Fund.

Full report : China set up a new ~$47.5B state-backed investment fund on May 24 as the third and largest phase of its Big Fund to boost the country’s semiconductor industry.