Shanghai has increased the registered capital of its chip investment fund by 11 times as part of China's strategy for technological self-sufficiency in the semiconductor sector.
Amid a global technological battle, Shanghai has significantly expanded its Integrated Circuit Industry Investment Fund, increasing its registered capital from 500 million yuan to 6 billion yuan. This 11-fold boost, amounting to approximately US$794 million, reflects China's commitment to enhancing its semiconductor capabilities and reducing dependency on foreign technology. The increase comes as the city aims to strengthen its position as a leading semiconductor hub by nurturing domestic firms and encouraging investment.
The expanded fund, known as Shanghai IC Fund III, has attracted new equity investors, notably the Shanghai State-owned Capital Investment Leading IC Private Equity Investment Fund which will invest 4.5 billion yuan. Additionally, Pudong Venture Capital, a government-backed entity, is contributing 500 million yuan. These investments signal a strong governmental push to develop local semiconductor companies and highlights the importance of state support in driving technological advancements amidst a challenging geopolitical landscape.
This move is part of a broader national strategy aimed at achieving self-sufficiency in technology, particularly in critical areas like semiconductors, which have become essential in various sectors including electronics, automotive, and telecommunications. The substantial increase in funding not only positions Shanghai as a key player in this domain but also echoes China's overarching objective to reduce reliance on foreign supply chains in a time of rising tensions with global competitors.
