This funding initiative represents the third phase of the China Integrated Circuit Investment Fund, officially launched on May 24, 2024.
Notably, this investment marks the largest funding effort since 2014, commonly referred to as the “Big Fund.” According to Tianyancha, a Chinese company information database, the state treasury holds the majority stake in this funding, with a 17% share and a capital injection of 60 billion yuan.
The second-largest investor in this initiative is China Development Bank Capital, holding a 10.5% stake. Additionally, five other banks each contribute around 6% of the total capital, including the Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications.
The Big Fund has allocated financing to SMIC and Hua Hong Semiconductor, the two largest chip foundries in China. This investment underscores China’s commitment to supporting local chip manufacturing, aiming to ensure competitiveness against foreign-produced chips and exert control over chip exports.
