Type to search

China’s Guangdong Plans $4.4bn Fund to Boost Chip Sector

Yuecai Holdings announced the fund, which will have a 17-year term and invest in auto chips and equipment for microchips, at an event on Tuesday, the Securities Times said

China's flag is seen with a computer chip
China's flag is seen with a computer chip in this Reuters image.


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.


China’s EV Stars Leaving Global Auto Rivals in Their Wake


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




China, HK Firms Sending a Flood of US Chips to Russia – Nikkei


Japan Joins US Chip War Against China With Export Restrictions


Huawei Beats US Sanctions With Chip Tool Breakthrough


Nvidia Tweaks Another Flagship AI Chip for Export to China


China Banks on Boot Camps, Double Pay to Boost Chip Talent


Money Alone Can’t Rescue China’s Chip Sector, Experts Say



Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


AF China Bond