China established a billion-dollar state-backed investment chip fund last week; an expert predicts that the fund will mostly concentrate on developing sophisticated processors for artificial intelligence and setting up the complete supply chain.
TakeAway Points:
- China’s recently established multibillion-dollar state-backed investment chip fund is expected to concentrate on developing sophisticated processors for artificial intelligence and setting up the complete supply chain, according to experts.
- It shows that Winston Ma, an adjunct professor at NYU School of Law, China’s new third semiconductor fund would concentrate on developing the entire supply chain and cutting-edge processors for artificial intelligence.
- The report stated that Ma said, “And today, because [Fund 3] is founded in the heart of the AI boom, I believe they will put more effort, attention on advanced computer chips and memory chips for future A,” on Wednesday.
China’s Multibilion-dollar Chip Investments
Last week, China launched a billion-dollar state-backed investment chip fund; One analyst projects that the fund will primarily focus on creating advanced artificial intelligence processors and establishing the entire supply chain.
According to one observer, China’s recently established multibillion-dollar state-backed investment chip fund is expected to concentrate on developing sophisticated processors for artificial intelligence and setting up the complete supply chain.
“Fund 3 will focus on [establishing] the total supply chain. Now, for Fund 1 and 2, they put a lot of focus on the equipment and materials related areas,” Winston Ma, adjunct professor at NYU School of Law, said Wednesday.
“And now, because [Fund 3] is established in the middle of the AI boom, I believe they will put more effort, emphasis on advanced computing chips and memory chips for future AI,” Ma said.”
Third Investment Fund
A third investment fund, which China has poured 344 billion Chinese yuan ($47.5 billion) into, intends to support the country’s semiconductor industry in the midst of a growing technology rivalry with the United States.
China’s efforts to lessen its reliance on foreign investment in its domestic chip sector include the establishment of the China Integrated Circuit sector Investment Fund, sometimes referred to as the National Integrated Circuit Industry Investment Fund and the Big Fund. It coincides with the West’s restriction of access to cutting-edge technology in nations like the United States and the Netherlands.
The newest fund will be the biggest of the current three. In 2014 and 2019, the first two funds raised 138.7 billion and 204 billion yuan, respectively.
“You could say this capital is so critical to the Chinese semiconductor sector. It is indispensable because these companies are struggling with the global capital markets,” said Ma, citing the reverse Committee on Foreign Investment in the United States executive order from the Biden administration in August, which “limits foreign capital into China’s critical technology sectors, including semiconductors.”
“So this is not something that China wants to do, it is almost a must-to-do,” he added.
Huawei’s Mate 60 Pro Smartphone
An examination of Huawei’s Mate 60 Pro smartphone by TechInsights exposed an advanced processor manufactured by SMIC, the leading semiconductor manufacturer in China, which was a blow to US sanctions. According to reports, the smartphone also has 5G connectivity; however, Huawei was supposed to be prohibited from using this technology by US sanctions.
