- 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.
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.
China’s ambitious push for tech dominance
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.
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Beijing’s strategy to boost domestic chip industry
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.
China’s focus on AI, 5G and quantum computing
Beijing has set a target for China to become a global leader in a wide range of industries including artificial intelligence (AI), 5G wireless, and quantum computing, as part of its “Made in China 2025” road map.
