China is stepping up its game in making computer chips with a massive injection of cash into its semiconductor industry. Known as the “Big Fund,” this marks the third version of the “National Integrated Circuit Industry Investment Fund,” and it packs 344 billion yuan (about $47 billion) to fuel advancements.
Led by the China Development Bank and backed by other government agencies and banks, this fund is more than just money. According to the Chinese media report, it’s also going to help companies it invests in manage their business better.
Why the big push?
Well, China’s been facing some roadblocks in making its own chips. Some projects, like Wuhan Hongxin Semiconductor, didn’t go as planned. Plus, international sanctions are making it tough for China to buy high-tech chips from abroad.
But China’s not backing down. They’re in a race with the US and EU, who have their own plans and big budgets for semiconductor development. China wants to be self-reliant in making chips, so they don’t have to depend on other countries.
Despite challenges, China has surprised the world with its tech before. Take the Kirin 9000S chip used in flagship Huawei smartphones, for example. It’s a high-tech marvel made in China, showing that they have serious skills.
Now, China is eyeing a new technology called RISC-V. It’s open-source, meaning it’s not subject to international sanctions. This could be a game-changer for China, letting them make chips without worrying about restrictions.
With the “Big Fund” backing them up, they’re ready to make their mark in technology, one chip at a time.
Featured image credit: Eray Eliaçık/Bing
