China has set up its third planned state-backed investment fund to boost its semiconductor industry, with a registered capital of RMB 344 billion ($47.5 billion), according to a filing with a government-run companies registry, reports Reuters. The hundreds of billions of yuan invested in the sector puts into perspective Chinese leader Xi Jinping’s drive to achieve self-sufficiency for China in semiconductors.
That commitment has taken on renewed urgency after the US imposed a series of export control measures over the last couple of years, citing fears Beijing could use advanced chips to boost its military capabilities.
Chinese chip shares rose, with the CES CN Semiconductor Index rallying more than 3% and set to log the biggest one-day gain in more than a month.