RTRS-Beijing To Launch USD40bn State-Backed Fund For Chip Manufacture

(MNI) London - Reuters reporting that according to two people familiar with the matter, the Chinese gov't is "...set to launch a new state-backed investment fund that aims to raise about $40 billion for its semiconductor sector [...] as the country ramps up efforts to catch up with the U.S. and other rivals. [...] One main area of investment will be equipment for chip manufacturing, said one of the two people and a third person familiar with the matter."

• Concerted US efforts to limit China's access to equipment that would allow them to make high-tech chips for its military or for the use in the development of advanced AI have proved effective.
• With the US and its allies Japan and the Netherlands imposing export controls it means that US or US-aligned business cannot supply equipment for, information relating to, or repair any existing equipment in Chinese fabs (chip factories), and remains a major source of tension between the two sides.