A surprising move from China, who wants foreign investment in its plan to become a world-class player in semiconductors
The Chinese government wants to reduce the overwhelming dependence on foreign technology. To achieve this goal, the Chinese government has set up a fund that aims to raise up to 200 billion yuan ($ 31.7 billion) to support all those companies that deal with technology. The country’s tech industry overseer said that The China Integrated Circuit Industry Investment Fund will now take even foreign money.
Chen Yin, general engineer and spokesman of the Ministry of Industry and Information Technology, said: “The second phase of the national IC fund is still raising money. We welcome overseas companies to participate in the fund”.
A surprising move at a time the US opposes the Asian nation’s goal of dominating next-generation technologies.
If the relationship with the US is currently not very good, it could even get worse now. Semiconductors lie at the heart of a spat between the world’s two largest economies, a dispute that is swelling tariffs, chilling Chinese investments in American companies. But President Donald Trump could declare a national emergency, block transactions and seize assets.
US put ZTE Corp. on the blacklisting for seven years, and that’s only reminds Beijing of the urgent need to whittle down its dependency on American technologies
China’s trying to reduce a reliance on some US$200 billion of annual semiconductor imports – about as much as it spends on importing oil. According to PwC, in fact, China buys about 59 per cent of the chips sold around the world, but in-country manufacturers account for only 16.2 per cent of the industry’s global sales revenue.
“China has a vast electronics information market and we will continue to take the path of innovation and international cooperation. We will push for quicker breakthroughs in key technologies” Chen said.
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