The Chinese government is working with state-backed companies in the chip-making industry to fundraise up to RMB 200 billion ($31.5 billion), sources told Bloomberg, as China takes larger strides towards its goal of becoming the world’s preeminent semiconductor industry.
The funds would be invested into domestic chip-building and semiconductor enterprises, such as China Integrated Circuit Industry Investment Fund Co. Plans have yet to be made public, however the sources state that the parties involved are hoping to inject the raised capital in the second half of the year, rolled out over 10 years.
China’s currently imports around $200 billion of semiconductors each year, a deficit that confers threats to both national security, and the development of its domestic tech sector.
“We want to be a balancer against the international giants, which means delivering self-made technologies and growing the market share of made-in-China products,” Qi Lian, President of technology asset manager Tsinghua Unigroup said on Thursday. “To achieve this goal, we are building up our own R&D and also keeping an eye on global technology collaboration.”