According to the news of Ukrinform, this is a news reported by Reuters, citing its own sources.

The new 300 billion yuan ($41 billion) fund will be larger than the previous two funds launched by the China Integrated Circuit Investment Fund in 2014 and 2019, raising 138.7 billion yuan and 200 billion yuan respectively. The decision to create it was made recently by the Chinese authorities in recent months.

One of the most important investment areas of the fund will be equipment for the production of microcircuits, which is currently needed most urgently.

The Chinese leadership has long emphasized the need for China to achieve self-sufficiency in semiconductors. The problem has been exacerbated by Beijing’s use of these chips to bolster its military capabilities, with Washington imposing export controls on the supply of advanced chips to China over the past few years.

In October, the US approved a comprehensive package of sanctions that cut off China’s access to advanced semiconductor chip manufacturing equipment. Japan and the Netherlands, allies of the United States, two manufacturers of such equipment, have taken similar steps.

One of the fund’s largest participants will be the Ministry of Finance of the People’s Republic of China, which plans to contribute 60 billion yuan. It was not possible to identify other donors; They refused to name themselves, citing the fact that discussions of the fund’s activities were confidential.

The fundraising process is expected to take months and it is difficult to predict when the fund will be operational at this time.

Backers of the two previous funds have included the Ministry of Finance and large state-owned financial companies such as China Development Bank, China National Tobacco Corporation, and China Telecom.

Over the years, previous funds have funded China’s two largest semiconductor chip manufacturers, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, as well as flash memory maker Yangtze Memory Technologies and smaller companies. However, the Chinese chip industry lags far behind market leaders, especially in advanced chip manufacturing.

As reported by Ukrinform, Taiwan-based world’s largest independent semiconductor manufacturing company TSMC has approved an investment of 3.5 billion euros for the construction of its first facility in Europe.