China's 3rd semiconductor 'Big Fund' starts spending $47bn war chest

New fund aims to draw outside money to boost chip industry in preparation for Trump

The $47 billion third phase of China's state-backed "Big Fund" has launched two new funds to attract more outside capital for semiconductor investment. © Reuters

SHUNSUKE TABETA, Nikkei staff writer

January 7, 2025 03:41 JST

BEIJING -- A 344 billion yuan ($47 billion) Chinese state-backed investment fund for the domestic chip industry has kicked into gear, as Beijing looks to beef up its domestic supply chain ahead of potential U.S. export restrictions by incoming U.S. President Donald Trump.

The third round of the China Integrated Circuit Industry Investment Fund, or Big Fund, invested about 93 billion yuan to launch a new fund on Dec. 31 together with Huaxin Investment Management, whose backers include the state-owned China Development Bank.