China to invest $40b in chip making amid US trade ban

• China plans to launch a new fund to boost its semiconductor industry.
• The fund is expected to raise 300 billion yuan ($41 billion).
• The fund will be used to develop tools and resources related to chip manufacturing.

Despite the ongoing US attempts to restrict China’s chip production, the effect might be modest.

China plans to launch a new fund to boost its semiconductor industry, with the goal of raising 300 billion yuan ($41 billion). This initiative, led by the China Integrated Circuit Industry Investment Fund, marks the third of its kind, following previous funding rounds of 138.7 billion yuan ($19 billion) in 2014 and 200 billion yuan ($27 billion) in 2019, according to a Reuters report.

Around 60 billion yuan ($8 billion) is anticipated to come from China’s finance ministry, with the contributors’ identities undisclosed, as in previous rounds where entities like China Telecom and China National Tobacco Corporation participated. Notably, a substantial portion of the fund will be dedicated to developing tools and resources related to chip manufacturing.

Just a few days ago, Huawei, a well-known Chinese electronics company, unveiled its latest smartphone, the Mate 60 Pro, equipped with domestically produced chips. Through a partnership with chip manufacturer Semiconductor Manufacturing International Corp. (SMIC), Huawei introduced a new Kirin 9000 chip.

Remarkably, the advanced 7nm technology from SMIC seems to give the Mate 60 Pro faster download speeds compared to what’s typically found in regular 5G smartphones.

The Mate 60 Pro’s unveiling, along with the subsequent confirmation of its capabilities, presents a stark contrast to the collaborative efforts of the United States, Japan, and the Netherlands to restrict China’s access to chips and limit its manufacturing capabilities.

Also Read

SpaceX launches additional Starlink satellites into space

SpaceX launched 21 Starlink satellites into orbit from Florida. The launch was...

In August, President Biden issued an executive order tightening restrictions on investments in Chinese companies involved in technologies such as semiconductors. Previous restrictions have notably focused on Huawei, including a ban implemented in January that prohibits the issuance of licenses for exporting US technology to the Chinese corporation.

To stay informed about current events, please like our Facebook page https://www.facebook.com/BOLUrduNews/.
Follow us on Twitter https://twitter.com/bolnewsurdu01 and stay updated with the latest news.
Subscribe to our YouTube channel https://bit.ly/3Tv8a3P to watch news from Pakistan and around the world.