Sun. Oct 6th, 2024

Reuters sources learned that the Chinese government will create a new investment fund with resources equivalent to 41 billion dollars, which will be directed to the development of the national semiconductor industry. Recipients of subsidies will be tasked not only with surviving in the face of sanctions, but also with catching up with foreign competitors in terms of technological development.

According to the source, the size of the funds managed by the fund exceeds the indicators of the two previous funds of similar purpose. The first was created in 2014 and had around 19 billion dollars, and the second had already received around 27 billion dollars in 2019. Among the recipients of these funds, as is commonly believed, are the companies SMIC and HSMC, which came to fruition to varying degrees. in the contract chip production segment, as well as China’s largest solid state memory manufacturer – YMTC. Funds were replenished directly from the state treasury, as well as with the participation of large state-owned enterprises in the PRC.

It is worth noting that the management of SINO-IC Capital, which managed the funds of the two previous funds, has been under investigation since 2021 and is suspected of misappropriation of funds and corruption, but this does not prevent the PRC authorities from keeping this organization on the list who has access to the resources of the third fund. However, at least one more of these organizations will be invested with similar powers. The Chinese aerospace department is cited as one of them, as it may be interested in the development of the national semiconductor industry. The contribution of the PRC Ministry of Finance to the new fund can be estimated at US$8.2 billion.

By NAIS

THE NAIS IS OFFICIAL EDITOR ON NAIS NEWS

Leave a Reply

Your email address will not be published. Required fields are marked *