China launches $1.4b semiconductor fund

The vehicle - which has secured initial commitments of RMB3 billion - will focus on investment in IC design, 5G communications, and other new-generation information technologies. Suzhou High-Tech Zone has also unveiled a 100,000-square-meter IC industry innovation center intended to house 200 leading companies from China and overseas.

An initial batch of 10 businesses will take up residency, among them the chip design unit of TV manufacturer Skyworth and fabless semiconductor start-up Supereal.

“For the introduction of top talent, we will offer a personalized package, with no upper limit to the amount of capital support,” said Wei Mao, the district mayor, Xinhua News Agency reported. "We will form a new high ground for the development of the integrated circuit industry."

Suzhou High-Tech Zone will not only provide capital but also offer services such as chip design, hardware simulation acceleration, packaging and testing, chip reliability verification, and wafer manufacturing. To realize this vision, it has signed contracts with the likes of incubator Zhongnan Hightech, foundry operator Taiwan Semiconductor Manufacturing Corporation (TSMC), testing specialist China Ceprei Laboratories, and Suzhou Zhongke IC Design Center.

In addition, Suzhou will provide substantial subsidies to cover initial rounds of IC tape-out costs and intellectual property purchases.

China's semiconductor industry is receiving huge policy support as part of efforts to build out local capacity in response to US efforts to restrict access to technology. PE and VC investors are pouring money into start-ups that could become key domestic suppliers. 

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• Topics
• Greater China
• Technology
• Renminbi fund
• Fundraising
• China
• semiconductor
• manufacturing