China sets up $47.5 bln investment fund to boost chip sector: media report

China's Ministry of Finance (MOF) and other entities have set up an investment fund to boost the development of the semiconductor industry, as the country seeks to strengthen self-reliance in critical technologies amid growing protectionism and restrictions by the U.S., according to media reports on Monday.

With registered capital of 334 billion yuan ($47.5 billion), the fund underscores China's firm resolve and confidence in boosting the semiconductor industry, and it will accelerate technological breakthroughs, especially in the manufacturing of advanced chips, industry experts said.

The third phase of the China Integrated Circuit Industry Investment Fund was set up on May 24,the new outlet stcn.com reported, citing information from the National Enterprise Credit Information Publicity System.

Six Chinese state-owned banks, including Industrial and Commercial Bank of China and Bank of China, have an equity of 37.06 percent, according to the report.

The latest addition to the investment fund comes as the U.S. continues to impose restrictions on sales of chips and related products to China, in an ill-intentioned attempt to contain China's technological rise. However, experts said that the fund showed China's firm resolve and confidence in the domestic chip industry.

"Establishing a national fund to support the semiconductor industry conveys confidence to the entire industry, indicating that the country has strong financial resources and technical support, and also has firm determination in terms of chip independence. Continuing to convey confidence and determination is crucial to the development of the industry," Ma Jihua, a veteran telecom industry observer, told the Global Times on Monday.

Ma said that despite the multi-year crackdown by the U.S., China's chip industry has not stopped developing but has instead grown rapidly. "The country's continued increase in investment will further enhance confidence in the industry, and it will also prompt the U.S. to realize the need to retreat from its campaign," the expert said.