China will raise RMB 200 billion ($31.7 billion) for domestic technology firms in a new government-led fund to try and reduce the country’s dependence on overseas technology, reports Bloomberg.
The Ministry of Industry and Information Technology, which oversees the country’s technological development and direction, announced plans for the China Integrated Circuit Industry Investment Fund in Beijing on Wednesday.
Spokesman for the ministry Chen Yin, said: “The second phase of the national IC fund is still raising money. We welcome overseas companies to participate in the fund.”
According to data from PwC LLP, China constitutes about 59% of the global semiconductor market, with domestic manufacturers only contributing 16.2% to global sales revenue. This has led to not only economic concerns in the shadow of a trade war with the US, but also questions of national security.