Trends
China is sinking another $47.5B into its chip industry
The fund matches Chinese government’s goal of making China a tech superpower by 2030, as outlined in the ‘Made in China 2025’ plan.
Headline
The fund matches Chinese government’s goal of making China a tech superpower by 2030, as outlined in the ‘Made in China 2025’ plan.
Context
OUR TAKE For a long period of time, Western countries, headed by the USA, have had a monopoly on the chip industry, which pushes up the prices of chips and limits the users’ choice. To end this monopoly, China has taken a series of actions to develop its own chips, including investing $47.5 billion into its own chip industry. –Audrey Huang, BTW reporter China is pumping another $47.5B into its chip industry, as the tech race between the it and the US escalating. This move sends a signal of its determination to challenge Western technological dominance.
Evidence
Pending intelligence enrichment.
Analysis
China is doubling down on its plan to dominate advanced technologies by setting up its largest-ever semiconductor state investment fund, worth $47.5 billion. Shares of top Chinese chipmakers have increased after the news. Semiconductor Manufacturing International Corporation (SMIC), the world’s third largest contract chipmaker, has grown 7% since Monday. Also read: Malaysia seeks $107B to lead in semiconductors Also read: Samsung reshuffles semiconductor leadership, boosts AI market With the US imposing sweeping restrictions on the export of American chips and technology, China is turning to its largest state-owned banks to create the “Big Fund”, underscoring President Xi Jinping’s push to bolster China’s position as a tech superpower. Last year, China’s Huawei surprised industry experts by launching a new smartphone powered by a 7-nanometer processor made by SMIC.
Key Points
- Beijing is establishing its largest investment fund for semiconductors, valued at $47.5 billion, to counter US export restrictions and support its tech industry.
- The fund matches Chinese government’s goal of making China a tech superpower by 2030, as outlined in the “Made in China 2025” plan.
Actions
Pending intelligence enrichment.
