Despite continuous US efforts to limit China’s chip production, the impact may be limited.
According to Reuters, China is prepared to announce a new fund to strengthen its semiconductor industry.
US efforts to limit China’s chip production
This is the third venture of the China Integrated Circuit Industry Investment Fund, and it intends to generate an amazing 300 billion yuan ($41 billion) in capital.
China’s Finance Ministry
The fund previously generated 138.7 billion yuan ($19 billion) in 2014 and 200 billion yuan ($27 billion) in 2019.
According to China’s finance ministry is anticipated to provide 60 billion yuan ($8 billion).
While the identity of other contributors are unknown, previous backers have included China Telecom and China National Tobacco Corporation.
Large Chunk of Investment
Notably, a large chunk of the investment will be devoted for the development of chip fabrication tools and resources.
Only a few days ago, Huawei, a well-known Chinese electronics manufacturer.
It’a unveiled its latest smartphone, the Mate 60 Pro, which features domestically made CPUs.
Huawei unveiled a new Kirin 9000s chip in partnership with chip manufacturer Semiconductor Manufacturing International Corp (SMIC).
Notably, SMIC’s sophisticated 7nm technology appears to give the Mate 60 Pro download speeds that outperform those found in regular 5G handsets.
Regular China 5G Handsets
This Mate 60 Pro announcement, along with the following validation of its capabilities, contrasts sharply with the attempts of the United States, Japan, and the Netherlands to limit China’s chip access and manufacturing prowess.
President Biden signed an executive order in August that further restricted investment in Chinese enterprises involved in technologies such as semiconductors.
Previous restrictions have especially targeted Huawei, including a prohibition on licences for selling US technology to the Chinese business announced in January.
To read our blog on “Huawei’s new 7-nm processor to power Mate 60 Pro,” click here