BEIJING (dpa-AFX) - China is setting up the largest chip fund worth $27 billion to develop cutting-edge technologies to counter the U.S. campaign, according to a report by Bloomberg News.
The report revealed that the National Integrated Circuit Industry Investment Fund of China is amassing fund from local governments as well as state enterprises for its third fund which is expected to exceed the 200 billion yuan of its second fund.
Notably, the first fund holds a stake in 74 companies, whereas the second fund holds a stake in 48 chip companies.
Bloomberg stated that China's move to develop a state-backed fund, named Big Fund, is in defiance of the U.S.'s move to escalate technology curbs in a bid to rein in the progress of Chinese chip and artificial intelligence industry.
Additionally, the U.S. has urged its allies also to tighten their technology restrictions over China.
The third fund, directly under the control of China's tech ministry, mainly aims to push the country towards promoting domestically developed technologies in order to achieve self-reliance such as ditching iPhones for Chinese phones, and sourcing hardware from Chinese manufacturers. However, such moves have badly affected the U.S. tech companies' sales and market share in China.
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