Itif Highlights Biden’s Role in China’s Semiconductor Expansion with New Beijing Fund
Friday, 30 August 2024, 11:00
Significant Investment in China's Chip Industry
The Beijing municipal government has established a new semiconductor investment fund, emphasizing China's commitment to bolstering its chip industry amidst rising trade tensions with the United States.
Details of the Beijing Fund Initiated
- Zhongguancun Development Group manages the newly created fund with registered capital of 8.5 billion yuan (US$1.2 billion).
- This initiative builds on previous support efforts initiated by the Beijing government since 2010.
- The fund is operated by Beijing Zhongguancun Capital Fund Management, aimed at energizing local semiconductor firms.
China's Larger Chip Ambitions
China's Big Fund III, established with 344 billion yuan, positions itself as a key player alongside significant US initiatives led by President Joe Biden, whose Chips and Science Act pledges US$53 billion in financing.
- Analysts predict substantial growth for companies across the semiconductor supply chain, fueled by these initiatives.
- Firm reliance on government subsidies has sparked discussions regarding overcapacity in production.
Leading Chinese foundry SMIC still trails TSMC in chip manufacturing, underscoring challenges ahead.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.