China to invest another $41bn in the nation's semiconductor sector - investment to reach $87bn from 2014

Attempts by US authorities to restrict the development of China's semiconductor sector have led to China thinking again about investment to boost the industry in the country.

Here's What We Know

The Chinese authorities intend to create a state investment fund to support the semiconductor sector. For the development of the industry will be allocated $41 billion, as reported by the news agency Reuters. Part of the funds will be directed to the purchase of equipment for the production of chips.

This is the third initiative of the Chinese government, aimed at stimulating the semiconductor industry within the country. In 2014 and 2019 China was able to attract $19bn and $27bn respectively. This brings the total investment since 2014 to $87bn.

In previous years, investors included China National Tobacco Corporation and China Telecom, among others. It is not yet specified from what sources China intends to attract funds this time. However, it is known that one of the investors will be the Ministry of Finance, which will invest about $8bn.

Source: Reuters