China Sets Up $47.5-B Fund For Semiconductors

China has set up its third planned state-backed investment fund to boost its semiconductor industry, with a registered capital of 344 billion yuan ($47.5 billion), a filing with a government-run companies registry showed, Reuters reported.

President Xi Jinping's drive to achieve self-sufficiency for China in semiconductors has taken on renewed urgency after the U.S. imposed a series of export control measures over the last couple of years.

President Xi Jinping's drive to achieve self-sufficiency for China in semiconductors has taken on renewed urgency after the U.S. imposed a series of export control measures over the last couple of years, citing fears Beijing could use advanced chips to boost its military capabilities.

The third phase of the China Integrated Circuit Industry Investment Fund was officially established on May 24 and registered under the Beijing Municipal Administration for Market Regulation, according to the National Enterprise Credit Information Publicity System, a government-run credit information agency.

The third phase will be the largest of the three funds launched by the China Integrated Circuit Industry Investment Fund, known as the "Big Fund."

China's finance ministry is the biggest shareholder with a 17% stake and paid-in capital of 60 billion yuan, according to Tianyancha, a Chinese companies information database company.

China Development Bank Capital is the second-largest shareholder with a 10.5% stake.

Seventeen other entities are listed as investors, including five major Chinese banks: Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications, each contributing around 6% of the total capital.