In a strategic move to bolster its semiconductor industry, China’s Guangdong province has recently established an impressive $1.5 billion chip fund. This initiative marks a significant step in China’s journey towards semiconductor self-reliance, a goal that has gained urgency in light of the escalating export restrictions from the US.
The Chip fund is intended to support the developing semiconductor industry
The Guangdong Semiconductor and Integrated Circuit Industry Equity Investment Fund, now in its second phase, reflects China‘s determination to support its chip industry amid international pressures. With Guangdong’s provincial government and two municipal government funds at the helm, this endeavor is a clear signal of China’s commitment to technological independence.
This move is not isolated. Similar efforts are underway across China, including Shanghai‘s semiconductor investment fund established in 2016. These regional strategies align with Beijing’s broader goals, underscoring a national consensus on the importance of the semiconductor sector.
Interestingly, the US has adopted a similar strategy with its 2022 Chips and Science Act, demonstrating a global recognition of the strategic importance of the semiconductor industry. The act promises subsidies for chip projects, indicating a global race towards semiconductor prowess.
The Guangdong fund follows its successful first phase initiated in December 2020. The current phase is primarily financed by Guangdong Yuecai Holdings, highlighting the role of local government in driving technological advances. The fund is a local counterpart to China’s National Integrated Circuit Industry Investment Fund, also known as the Big Fund, which has been pivotal in the country’s semiconductor progress despite challenges.
China’s approach to semiconductor development is comprehensive, involving both state and private sectors. This “whole-nation” strategy is not just about advancing technology; it’s a response to intensified US trade sanctions. Recent US export control rules have only added urgency to China’s endeavors. The path to self-reliance in semiconductors is not short, but China is showing determination. As the industry evolves, the implications of these developments on global technology and trade dynamics will be profound and far-reaching.
RELATED:
- Xiaomi launches the MIJIA Laser Engraving Machine for open sales in China
- XPeng G6 series EVs getting a 10,000 Yuan ($1400) year-end discount, starting from 199,900 Yuan ($28,040) in China
- Get $100 OFF on Vivo X100 Pro at Giztop
- Download the best GCam APK for Samsung Galaxy S23 Ultra
(Via)
