China has futuristic plans to be the boss in semiconductor technology and wants to build a world-class chip manufacturing industry. It is quite a surprise move from the most populous nation, especially during the time when the U.S. is opposing its technology to become the dominating technologies of the next-gen.
In an effort to reduce the over-relying of people on foreign technology, the government of China aims to set up a fund up to $31.7 Billion (nearly 200 billion Yuan), in order to develop a spectrum of versatile domestic firms that will comprise of equipment makers to processor builders and designers.
The China Integrated Circuit Industry Investment Fund Co. is interested in taking foreign money to invest in their plan, as stated by the overseer of China’s tech industry on Wednesday.
Chen Yin, spokesman and general engineer of Ministry of Industry and IT, told Beijing reporters that the national IC fund is in its second phase in raising money for the project and they welcome foreign companies to invest in the fund.
Semiconductors lie at the center of the ongoing technological dispute between the world’s two biggest economies at present. Also, the recent spat between the U.S. and China has resulted in swelling tariff rates and also largely affecting the Chinese investments in the chip companies in America.
It is hampering China’s technological developments, in regards to the 5th generation wireless equipment to the artificial intelligent systems.
There is also a possibility that the U.S. government may implement 1977 law, which will give rights to President Donald Trump for declaring a state of national emergency. This may further lead to blocking transactions and also seizing technology assets.
Recently, the U.S. has put a ban on ZTE Corp. for nearly 7 years, which is one of the reasons why Beijing wants to develop its own chip industry and stop depending on American assets and technologies.