China has set up a mammoth 204 billion yuan ($29 billion) state-owned Integrated Circuit Investment Fund II to accelerate the development of the semiconductor industry, per a media statement.
The second fund, which is led by 27 shareholders, counts the Ministry of Finance of the People’s Republic of China, China Development Bank Capital, Optics Valley Financial Holding Group, Caldecott Properties Limited-backed Investment Fund and China Tobacco among its top five investors. The Ministry of Finance accounts for 11.02 per cent share of the fund.
The new fund will invest in the industrial chain sectors involving design, manufacturing, and packaging.
The state-owned Integrated Circuit Investment Fund was set up in 2014 by the Ministry of Industry and Information Technology and Ministry of Finance to give a fillip to the Chinese circuit chip industry to achieve economic self-sufficiency.
The first vehicle, which was sized at 139 billion yuan ($20 billion), invested in listed companies including Sanechips Technology Co., Ltd, JCET Group, NAURA Technology Group Co., Ltd., and San’an Optoelectronics Co, Ltd.
The Chinese government has now approved the deployment of the second fund following the successful foundation built by the first vehicle. The second fund is looking to back specialised areas and core systems that target to protect the industrial chain.
The second fund targets to build a well-operated supply system in the integrated circuit industry. The government is looking to lay emphasis on enabling the development of a user-friendly network as also to create an ecosystem that transforms import reliance to export sufficiency.