China will raise $40 billion to boost chipmaking amid breakthrough on local chipmaking front
ALBAWABA – In response to the United States’ (US) recent export controls and restrictions on investment in Chinese high-tech sectors, China will raise $41 billion to boost chipmaking domestically, Reuters reported Tuesday.
Unnamed sources confirmed to the Canada-based news agency that the China Integrated Circuit Industry Investment Fund, also known as the Big Fund aims to launch a massive fund to support the domestic sector.
One main area of investment will be equipment for chip manufacturing, the sources told Reuters.
SMIC to pave the way as China will raise $40 billion to boost chipmaking
Meanwhile, Huawei Technologies and China's top chipmaker SMIC have successfully built an advanced 7-nanometer processor to power Huawei’s latest smartphone, according to a report by TechInsights.
If anything, this indicates a significant breakthrough in China’s advanced chipmaking industry.
A logo of Huawei is seen during the World Artificial Intelligence Conference (WAIC) in Shanghai on July 6, 2023. (Photo by WANG Zhao / AFP)
It is the first China-made processor to utilize SMIC's most advanced 7nm technology, and it reaffirms that China’s domestic sector has made some headway on the advanced semiconductor frontier.
The firm's findings were first reported by Bloomberg News.
Huawei's Mate 60 Pro is powered by a new Kirin 9000s chip, made by SMIC, Semiconductor Manufacturing International Corp, TechInsights said in the report they shared with Reuters on Monday.
The Mate 60 Pro hit the markets last week and the specifications provided advertised its ability to make satellite calls. But no information was entailed on the power of the chipset inside, according to Reuters.
China will raise $40 billion to boost chipmaking in response to US sanctions
The US and China have been engaged in an escalating trade-tech war resulting in recent sanctions and restrictions - Shutterstock
In October, the US rolled out a sweeping sanctions package that cut China's access to advanced chipmaking equipment and US allies Japan and the Netherlands have taken similar steps.
The new fund was approved by Chinese authorities in recent months, two of Reuters’ sources confirmed, and another said China's finance ministry is planning to contribute $8.2 billion. Whereas other contributors were not disclosed.
