(MENAFN) Beijing has concluded its largest financing round to date, amounting to 344 billion yuan (approximately USD47 billion), aimed at bolstering its Semiconductor industry. This move comes in response to increasing pressure and restrictions imposed by the United States and Western countries on China’s access to advanced technologies. The funding initiative, known as the “big fund,” is part of President Xi Jinping’s strategy to achieve self-sufficiency in crucial sectors, such as semiconductors, in light of persistent efforts by Washington to limit China’s technological advancements.

The National Integrated Circuit Industry Investment Fund represents Beijing’s significant financial commitment to supporting emerging companies and technologies within the semiconductor sector. This funding initiative is strategically designed to address what Beijing identifies as the “choke points” in the chip industry, crucial for sustaining China’s technological independence.

The substantial financing was sourced from contributions by various stakeholders, including the Ministry of Finance, local governments, state-owned enterprises, and notably, state-owned banks for the first time. This diversified funding approach underscores the government’s determination to mobilize resources from multiple channels to support its strategic objectives in the semiconductor domain.

According to reports, this initiative coincides with an escalating technological race between China and the West, demonstrating Beijing’s recognition of the challenges posed by Western efforts to maintain technological dominance. The funding effort reflects China’s proactive approach to nurturing its domestic semiconductor industries in response to external pressures.

It is noteworthy that the United States has also allocated significant financial support to incentivize the construction of chip factories within its borders, further intensifying the global competition for semiconductor leadership.

This latest financing round marks the third phase of the “Big Fund,” following previous rounds in 2014 and 2019, which raised 139 billion yuan and 200 billion yuan, respectively. The fund has a track record of supporting Chinese chip giants and driving industry growth. According to sources cited by the British newspaper, this third round of funding specifically targets Chinese companies involved in chip factory equipment, expanding the fund’s scope beyond semiconductor manufacturing.

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