China To Launch Second Phase Of Funding For Semiconductor Development

In accordance with state media Securities Times, China's southern Guangdong province plans to launch a second phase of a semiconductor fund worth 30 billion yuan ($4.37 billion).

According to Securities Times, Jin Shenghong, chairman of Yuecai Holdings, said at a semiconductor event in Guangdong on Tuesday that the fund will have a term of 17 years and will invest in auto chips and equipment for the semiconductor material.

Since its inception in 2021, the fund's first phase has raised 31 billion yuan and invested in 102 companies. According to the report, 19 of these companies will seek IPOs in 2023 and 2024.

China is attempting to develop self-reliance in key technologies such as semiconductors as it faces increasing pressure from the United States, which has cited national security as a reason for restricting access to key supply chains for such Chinese industries.

Beijing has urged that cutting-edge technology research and development be accelerated. Another chip-focused fund is the China Integrated Circuit Industry Investment Fund, also known as the "Big Fund," which China launched in 2014.