Guangdong province in southern China plans a 30-billion yuan ($4.4 billion) expansion of a semiconductor fund, state media reported on Tuesday.
The fund will have a 17-year term and invest in auto chips and equipment for semiconductor material, the Securities Times said.
Jin Shenghong, chairman of a trust company called Yuecai Holdings, made the announcement at a semiconductor event in Guangdong on Tuesday, the state daily said.
19 firms planning IPOs
The fund’s first phase, established in 2021, has reached 31 billion yuan and saw investments in 102 companies so far. Out of these firms, 19 will seek IPOs in 2023 and 2024, the report said.
China is desperate to build self-reliance in key technology such as semiconductors as it faces increasing pressure from the United States, which has cited national security in restricting Chinese industries’ access to advanced microchips.
This has led to officials in Beijing urging that the research and development of cutting-edge technologies be accelerated.
Other funds focused on the chips industry include the China Integrated Circuit Industry Investment Fund, also known as the “Big Fund”, which China launched in 2014.
- Reuters with additional editing by Jim Pollard