• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 17 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 16 hours How Far Have We Really Gotten With Alternative Energy
  • 16 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 3 days Bankruptcy in the Industry
  • 7 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days The United States produced more crude oil than any nation, at any time.
The Global Economic System is Reaching Its Limits

The Global Economic System is Reaching Its Limits

The world's economic myths, especially…

ING Chief Economist Calls for Further Rate Cuts in China

ING Chief Economist Calls for Further Rate Cuts in China

China's consumer inflation was lower…



The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Beijing Unveils Massive $40 Billion Fund To Boost Chipmaking

  • The $40 billion investment, the largest by China's "Big Fund", aims to bolster equipment for advanced chip manufacturing.
  • Previous "Big Fund" initiatives, launched in 2014 and 2019, were supported by giants like China Development Bank Capital and China Telecom.
  • China's massive investment responds to U.S. efforts, like the CHIPS act, to limit China's access to advanced chips and boost American production.

It looks as though the competition in semiconductors between the U.S. and China is only getting started.

And hey, when it doubt: nationalize the industry! That seems to be China's strategy after it was announced this week that Beijing is going to be launching a new, $40 billion investment fund backed by the government, to help boost and subsidize its semiconductor industry. 

This investment will be the largest of three that have been launched by China's "Big Fund", the nickname for the China Integrated Circuit Industry Investment Fund, according to Yahoo Finance. Its focus is going to be on "investment on equipment used in manufacturing advanced chips".

Other "Big Fund" funds were launched in 2014 and 2019, with funding provided by companies like China Development Bank Capital, China National Tobacco Corp. and China Telecom. 

Semiconductor Manufacturing International Corp. and Hua Hong Semiconductor have been beneficiaries of the "Big Fund" in the past, as has flash memory chipmaker Yangtze Memory Technologies, Yahoo reports. 

The fundraising process "may take months", according to the report, and it is unclear when China may launch the fund. 

China is aiming to be self-reliant when it comes to chipmaking at the same time the U.S. has tried to limit the country from accessing advanced chips. 

Chinese President Xi Jinping's domestic push for semiconductors comes after the U.S. government's CHIPS act was launched, providing $39 billion in manufacturing subsidies specifically targeting high end chip production in the U.S.

The global semiconductor industry remains weighed down by regulation: as of now China has imposed restrictions on Micron and the U.S. has put into place export controls that have caused some companies difficulty in selling to China.

By Zerohedge.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News