China has launched its third government-backed fund — the so-called Big Fund III — to support the semiconductor industry, registering a capital of 344 billion yuan ($47.5 billion), reports Reuters. The third installment of the Big Fund was originally designed to raise $27 billion, but as it turns out it raised $20.5 billion more as China is seeking to achieve self-sufficiency in the semiconductor sector, especially in the wake of U.S. export restrictions aimed at limiting China's access to advanced technology for potential military use.
One of the primary focuses of the third phase is to boost domestic development and production of equipment for chip manufacturing, a critical area for advancing China's semiconductor capabilities as companies like ASML, Applied Materials, and Tokyo Electron can no longer supply their most advanced tools to China due to export restrictions.
