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China Establishes $48 Billion Phase III National Semiconductor Fund

China has established a “Phase III National Semiconductor Fund” with a registered capital of 344 billion yuan ($48 billion) as part of efforts to build a national team for the semiconductor industry. The Ministry of Finance is the largest shareholder of the fund, with a 17.44% stake.

According to media reports, the National Integrated Circuit Industry Phase III Investment Fund Co., Ltd. was officially established on May 24th, with Zhang Xin as the legal representative. The company’s business scope includes private equity fund management, venture capital fund management services, equity investment, investment management, and asset management activities.

The fund’s other shareholders include state-owned policy banks, state-owned enterprises, and major commercial banks. The National Semiconductor Phase I and II Funds were established in 2014 and 2019 with registered capital of 98.72 billion yuan and 204.15 billion yuan, respectively.

Analysts suggest that, while the previous two funding phases focused on semiconductor equipment and materials, Phase III may prioritize investment in high-value products like High Bandwidth Memory (HBM) and advanced DRAM chips.

The establishment of national semiconductor funds reflects China’s long-term strategic plan to boost its semiconductor industry through substantial financial support, aiming to achieve self-sufficiency in critical technologies. The Chinese government appears committed to strengthening China’s semiconductor capabilities and reducing reliance on foreign suppliers.

Source: Central News Agency (Taiwan), May 27