Daily Management Review

China sets up $48bn fund to support semiconductor industry


The Wall Street Journal reports that China has established a 344 billion yuan ($48 billion) fund to support the growth of the semiconductor industry.

Establishment of this fund is the third stage of the industrial support project. Its resources will be twice as large as the funds allotted in the two preceding phases (2019 and 2014).

The People's Republic of China's Ministry of Finance is the fund's largest shareholder with a 17 percent stake. Each of the five major state-owned Chinese banks—China Construction Bank, Agricultural Bank of China, Bank of China, Industrial & Commercial Bank of China, and Bank of Communications—owns 6% of the total.

Recently, U.S. officials have placed restrictions on China's access to cutting-edge chips and machinery used in the manufacturing of semiconductor components. According to the Wall Street Journal, the growth of artificial intelligence has led to a substantial rise in the demand for semiconductors, prompting action to promote the industry from both the US and other nations.

source: wsj.com