The Shanghai Semiconductor Industry Investment Fund (SSIIF) has doubled its size to around US$2 billion after a new funding round, as the Chinese semiconductor hub pumps more money into the sector amid US sanctions targeting the industry. The SSIIF raised 6.9 billion yuan (US$963 million) from investors, most of them state-backed companies based in Shanghai, to expand its capital base to 14.5 billion yuan.
The capital boost will help finance projects vital to China’s self-sufficiency in the semiconductor sector. The SSIIF is part of efforts by local Chinese governments to strengthen their chip industries, in addition to the national initiative known as the “Big Fund”.
The fund’s latest phase focuses on major semiconductor initiatives, supporting projects by key players in the industry. The establishment of the Integrated Circuit Industry Parent Fund by the Shanghai government also further demonstrates China’s commitment to developing local alternatives to foreign products in the semiconductor industry.
Government subsidies for semiconductor companies in China have been increasing, reflecting Beijing’s efforts to reduce reliance on foreign technologies. The semiconductor industry in China continues to evolve with significant government support and investment.