In part to reduce excessive dependence on foreign technology, the Chinese government has established a fund that aims to raise 200 billion yuan (about 31.7 billion US dollars) to support a range of domestic companies, from processor designers to equipment manufacturers. Industry regulators said on Wednesday that 'National IC Industrial Investment Fund Co., Ltd.' (referred to as the 'large fund' in the industry) will accept foreign investment.
'The main goal of the second phase of the national fund is still financing. We welcome the participation of foreign companies.' Chen Yin, chief engineer and spokesperson for the Ministry of Industry and Information Technology (Ministry of Industry and Information Technology) explained.
The core of the recent dispute between the world's two largest economies - the United States and China - is semiconductors. The dispute between the two countries has not only led to high tariffs, but also reduced China's investment in U.S. companies and gave China a fifth-generation wireless communication. The development of science and technology such as artificial intelligence brought a blow. The U.S. government is considering the use of the 1977 law. According to this law, President Donald Trump may declare a state of emergency in order to prevent transactions and confiscate assets.
With the United States putting ZTE on the blacklist for seven years, Beijing once again suddenly realized that China urgently needs to reduce its dependence on U.S. technology. The move against ZTE has instead stimulated China’s existing plan to invest 1,500 in the next decade. Billion US dollars, gradually seize the leading position in the field of chip design and manufacturing. US executives and officials have repeatedly reminded that this ambition of China may harm the interests of the United States.
At present, China’s annual semiconductor imports amount to approximately US$200 billion—almost equal to the level of oil imports. China is trying to reduce its dependence on imported semiconductors. According to PricewaterhouseCoopers (PwC), China consumes 59% of the world The chip, but the sales revenue of domestic manufacturers only accounted for 16.2% of the global sales revenue in the industry. This is still a small problem. The more serious problem is that the weak semiconductor industry may weaken the national security and combat the booming technology. industry.
In the first phase of the fund, a total of 140 billion yuan was raised, and the funds flowed to about 20 domestic listed companies, including ZTE and chip maker SMIC International Semiconductor Manufacturing Co., Ltd. (SMIC). Investors mainly focus on central and local governments and state-owned enterprises. It is not clear whether the Ministry of Industry and Information Technology has accepted external investment.
'China has a huge electronic information market. We will continue to carry out innovation and international cooperation,' Chen said. 'We will strive for rapid breakthroughs in key technology areas.'