Home ยป China Establishes a $1.7 Trillion Industry Support Fund for Third Generation Chip Production, Aiming to Boost Semiconductor Manufacturing Machinery

China Establishes a $1.7 Trillion Industry Support Fund for Third Generation Chip Production, Aiming to Boost Semiconductor Manufacturing Machinery

The Chinese government has established the China Integrated Circuit Industry Investment Fund (ICF), which is the third largest fund with a value of 344 billion yuan or approximately 1.7 trillion baht. The ICF was first founded in 2014 with a value of around 700 billion baht in Phase One and reached 1 trillion baht in Phase Two in 2019. It has invested in various Chinese semiconductor companies such as SMIC, YMTC, Tsinghua Unigroup, and ZTE.

While there is no specific investment strategy disclosed yet, Reuters has reported that the fund is preparing to invest primarily in chip manufacturing equipment. This move seems logical as the Chinese chip industry has faced restrictions from accessing modern equipment by the United States in recent years.

Source: Channel News Asia

Photo by Leslin_Liu

TLDR: China Integrated Circuit Industry Investment Fund (ICF) is the largest fund in China with a value of 344 billion yuan, focusing on investing in the semiconductor industry.

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