The fund’s major stakeholders include China’s finance ministry, which holds a 17% stake, and China Development Bank Capital, with a 10.5% stake. Seventeen other investors, including five major Chinese banks, also contribute to the fund, each adding around 6% to the total capital. The substantial investment has already sparked a positive response in the market, with the CES CN Semiconductor Index rising by over 3%, marking its largest one-day gain in over a month.

Why does it matter?
The Big Fund, as it is known, has been pivotal in supporting leading chip manufacturers in China, such as Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, as well as emerging players, such as Yangtze Memory Technologies. The third phase will emphasise investments in chip manufacturing equipment, a strategic move to enhance China’s production capabilities. The ongoing effort highlights China’s determined bid to overcome technological barriers and secure its position in the global semiconductor landscape.