📣 China Increases Funding for Chip Manufacturing
posted 27 May 2024
The Chinese government has launched a specialized investment fund dedicated to supporting local development and manufacturing of chips, including those designed for artificial intelligence. Since its official establishment on May 24, the fund has attracted over $47.5 billion in investments.
The Ministry of Finance of China serves as the main managing shareholder. The fund also includes investments from a variety of state-backed local financial companies and major national banks, such as the Industrial & Commercial Bank of China.
This initiative was introduced amid U.S. government-imposed restrictions and calls from various Western governments for stricter export controls to China. Following the announcement of this initiative, shares of major Chinese chip manufacturers like SMIC and Hua Hong Semiconductor saw a rise of 5–10%.
For context, the combined efforts of the USA and the European Union have allocated $81 billion towards developing, creating, and producing next-generation chips. For example, the U.S. government has invested $8.5 billion in Intel to facilitate mass production within the United States.
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