[News] China’s Big Fund Phase Three Commences, Injecting 344 Billion RMB into Semiconductor Industry Growth

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According to TianYanCha.com, the third phase of the National Integrated Circuit Industry Investment Fund Co., Ltd. has recently been established in China. The legal representative is Zhang Xin, with a registered capital of RMB 344 billion.

The fund’s business scope includes private equity fund management, venture capital fund management services, and activities such as equity investment, investment management, and asset management through private equity funds, as well as business management consulting.

Shareholder information reveals that the company is jointly held by 19 shareholders, including the Ministry of Finance, China Development Bank Capital, Shanghai Guosheng Group, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China.

As reported by the Commercial Times, the National Integrated Circuit Industry Investment Fund, known as the Big Fund, was established in 2014. Its aim is to leverage fiscal funds to attract private capital, focusing on key segments of the integrated circuit industry chain, including chip design, manufacturing, packaging and testing. The fund’s overall plan spans 15 years, highlighting a long-term strategic investment perspective.

The Big Fund not only provides financial support but also integrates resources, guides private capital investment, and promotes cooperation within the industry chain. These efforts have significantly enhanced the overall competitiveness of China’s integrated circuit industry. The fund plays a crucial role in advancing strategic national industries, accelerating industrial restructuring and upgrading, and strengthening national competitiveness.

The first phase of the National IC Industry Investment Fund, established in 2014, had a scale of approximately RMB 130 billion. Its primary goal was to support the development of the domestic semiconductor industry and reduce reliance on foreign chip technology. Public data indicates that its investments were distributed approximately as follows: 67% in integrated circuit manufacturing, 17% in design, 10% in packaging and testing, and 6% in equipment and materials, highlighting the manufacturing sector as a key focus.

The second phase of the National IC Industry Investment Fund was launched in 2019 with a scale of about RMB 200 billion, significantly larger than the first phase. While continuing to support the semiconductor industry, the second phase places greater emphasis on the upstream and downstream segments of the industry chain, including IC design, manufacturing, packaging, testing, and the R&D of related equipment and materials.

▲The detailed information of the National Integrated Circuit Industry Investment Fund Phase Three Co., Ltd. as shown on TianYanCha.com.

(Photo credit: SMIC)