The technology world is buzzing with massive investment of China in the semiconductor industry. The Chinese government has created a $47.5 billion fund to increase its domestic semiconductor capacity and reduce its dependence on foreign technology. This step is of great importance, especially at a time of increasing US technology sanctions.
Strategic Goals and Fund Allocation
This fund, called Big Fund III, is planned to support various segments of the semiconductor industry, including contract manufacturers, equipment suppliers, and material suppliers. Among the strategic goals is for China to become self-sufficient in semiconductor production, reducing its dependence on other countries for both utilization and production. This initiative is particularly significant for China as it seeks to diminish the dominance of the US and its allies in semiconductor production.
Comparison to Previous Funds of China
The size of the fund is notable for being larger than Big Fund I (2014-2019) and Big Fund II (2019-2024). Big Fund III, worth 344 billion yuan (about $47.5 billion), underscores China’s ambition to achieve self-sufficiency in semiconductor manufacturing.
Future Expectations
This fund is expected to accelerate China’s development in the semiconductor industry, enabling it to take a stronger position in global competition. Moreover, this move could open a new chapter in the semiconductor war waged by the US and the European Union against China.
Source: https://www.cioupdate.com.tr/teknoloji/cip-endustrisi/
