China has set up another large fund with a scale of more than 340 billion yuan to support semiconductors

China set up a third fund to inject US$47.5 billion to boost the semiconductor industry. China has established a third national semiconductor fund with a total value of US$47.5 billion to promote the development of its semiconductor industry. This move is part of the Chinese government's efforts to reduce dependence on foreign technology and enhance domestic chip manufacturing capabilities. The new fund will mainly be used to support companies in the fields of semiconductor materials, devices, and chip design. Previously, China had established two similar funds, totaling US$13.8 billion and US$29 billion in 2014 and 2019, respectively.

Countries such as the US and the European Union have also invested nearly 81 billion US dollars (about 590 billion yuan) to produce next-generation semiconductors, and the global rivalry with China for chip dominance is on the rise.

Chinese companies have strong execution capabilities, and they will definitely upgrade technology and quantify production in the later stages.

The development of semiconductors will definitely be booming in the future, and the possibility that mass production worsens will cause companies to lose money or profit margins.