Chinese city pours USD 29 bn to build chips as India, US eye semiconductor dominance, Auto News, ET Auto

As India and the US double down on local semiconductor manufacturing, the municipal government of Guangzhou in China has invested 200 billion yuan (USD 29 billion) to establish funds that will help spur activities involving semiconductors, the media reported on Tuesday.

Guangzhou’s Industry Investment Fund of Funds (FoF) will focus on activities involving semiconductors, renewable energy and advanced manufacturing, reports the South China Morning Post.

Meanwhile, the city’s Innovation Investment Fund of Funds will target financing for early-stage hi-tech companies.

“The city’s funding effort would appear to raise the stakes for China in its tech rivalry with the US,” the report mentioned.

US President Joe Biden enacted into law the Chips and Science Act last year that enables the US to give USD 53 billion in incentives to attract more chip manufacturing in the country.

Meanwhile, the Indian government approved INR 76,000 crore (USD 10 billion to attract investments in the field of semiconductors and display manufacturing.

Vedanta and Foxconn signed a Memorandum of Understanding (MoU) with the Gujarat government last year to invest INR 1,54,000 crore to set up the semiconductor and display manufacturing plant which is India’s first.

In China, state-level financial support has helped develop major industries over the past decades.

The China Integrated Circuit Industry Investment Fund or the Big Fund in 2014 was the primary financing vehicle for the country’s semiconductor industry, with the initial round of investments reaching more than 138 billion yuan.

“The government of eastern Anhui province last month announced that it will set up a guidance fund of 200 billion yuan, targeting tech industries,” said the report.

Also Read:

In the biggest ever corporate investment in the history of independent India, a joint venture of Vedanta and Foxconn in September last year signed a Memorandum of Understanding (MoU) with the Gujarat government to invest INR 1,54,000 crore to set up the plant in the state. This will be the first manufacturing facility for semiconductors in India.

As India and the US double down on local semiconductor manufacturing, the municipal government of Guangzhou in China has invested 200 billion yuan (USD 29 billion) to establish funds that will help spur activities involving semiconductors, the media reported on Tuesday.

Guangzhou’s Industry Investment Fund of Funds (FoF) will focus on activities involving semiconductors, renewable energy and advanced manufacturing, reports the South China Morning Post.

Meanwhile, the city’s Innovation Investment Fund of Funds will target financing for early-stage hi-tech companies.

“The city’s funding effort would appear to raise the stakes for China in its tech rivalry with the US,” the report mentioned.

US President Joe Biden enacted into law the Chips and Science Act last year that enables the US to give USD 53 billion in incentives to attract more chip manufacturing in the country.

Meanwhile, the Indian government approved INR 76,000 crore (USD 10 billion to attract investments in the field of semiconductors and display manufacturing.

Vedanta and Foxconn signed a Memorandum of Understanding (MoU) with the Gujarat government last year to invest INR 1,54,000 crore to set up the semiconductor and display manufacturing plant which is India’s first.

In China, state-level financial support has helped develop major industries over the past decades.

The China Integrated Circuit Industry Investment Fund or the Big Fund in 2014 was the primary financing vehicle for the country’s semiconductor industry, with the initial round of investments reaching more than 138 billion yuan.

“The government of eastern Anhui province last month announced that it will set up a guidance fund of 200 billion yuan, targeting tech industries,” said the report.

Also Read:

In the biggest ever corporate investment in the history of independent India, a joint venture of Vedanta and Foxconn in September last year signed a Memorandum of Understanding (MoU) with the Gujarat government to invest INR 1,54,000 crore to set up the plant in the state. This will be the first manufacturing facility for semiconductors in India.