China is planning a huge state-backed fund to boost its production of semiconductors after the US cracked down on exporting chips to the country, Reuters reported.
The fund aims to raise $41 billion for the sector, and one of its main areas of investment will be equipment for chip manufacturing, according to the news agency.
It will be launched by China’s “Big Fund” — officially known as the China Integrated Circuit Industry Investment Fund. Its previous funds launched in 2014 and 2019 raised about $19 billion and $27 billion respectively, per Reuters.
Semiconductors are materials such as silicon, which are used in electronic circuits so they have a huge range of technical applications. Most recently, they’ve been under the spotlight since the AI boom as countries race to see who can become dominant in the sector.