China sets up third fund with $47.5 bn to boost semiconductor industry

China has set up its third planned state-backed investment fund to boost its semiconductor industry, with a registered capital of 344 billion yuan ($47.5 billion), according to a filing with a government-run companies registry.

The hundreds of billions of yuan invested in the sector puts into perspective President Xi Jinping’s drive to achieve self-sufficiency for China in semiconductors.

That commitment has taken on renewed urgency after the US imposed a series of export control measures over the last couple of years, citing fears Beijing could use advanced chips to boost its military capabilities.