Semiconductors

China Chip Fund Head Investigated for Corruption

 

The head of China’s largest state-backed semiconductor investment fund is under investigation, the country’s corruption watchdog said.

Big Fund head Ding Wenwu is “suspected of serious violations of the law” said the Central Commission for Discipline Inspection, and faces a disciplinary review.

It did not disclose more details. The Big Fund did not immediately respond to a request for comment, and Ding Wenwu was unable to be reached.

The move comes just two weeks after a similar investigation was announced into a former executive of the firm.

China launched the Big Fund in 2014 as a means to accelerate its semiconductor industry, which is considered to lag behind that of the United States, Taiwan and South Korea.

The organisation raised 138.7 billion yuan ($20.54 billion) for its first fund, and 204 billion yuan for its second fund.

Over the years, the fund has provided financing to Semiconductor Manufacturing International Corporation, China’s leading chip fab, plus Yangtze Memory Technologies (YMTC), a maker of flash memory chips, plus a number of smaller companies and funds.

In July, the CCDI announced it had placed Lu Jun, former head of investment firm Sino IC Capital, which managed the Big Fund, under investigation, citing “serious violation of discipline and the law.”

 

  • Reuters, with additional editing by Alfie Habershon

 

 

Read more:

Chip Stocks Suffer as Pelosi Taiwan Trip Stokes Tensions

US, Japan Chips Alliance Aims to Thwart China Ambitions

TSMC Shuts if China Invades Taiwan, Says Boss – Focus Taiwan

China Gives Up On $20bn Wuhan Chipmaking Fiasco

 

Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.

Recent Posts

Pro-China Candidate Muizzu to be Maldives’ New President

Former housing minister Mohamed Muizzu, who has vowed to develop warmer ties with Beijing, will…

18 hours ago

BOJ Not Afraid of Cost of Phasing Out Stimulus, Ueda Says

Bank of Japan Governor Kazoo Ueda says there is "still a way to go" before…

19 hours ago

New Home Prices Edge up in China, After Falling for 4-Months

Developers sped up the launch of new and higher-quality housing projects to to take advantage…

1 day ago

ADB Agrees to $300m Loan to Transform Chinese Coal City

The Asian Development Bank said on Saturday it approved a $300 million loan to Changzhi…

2 days ago

China’s Factory Activity Expanded in September, Survey Finds

Official manufacturing survey for September suggests the country's economy is beginning to bottom out, analysts…

2 days ago

China Wants to be World’s Dominant Power: Blinken – AFP

China wants to surpass the United States and recover what they believe is their rightful…

3 days ago