The central government will primarily oversee the distribution of funds.
In 2014, the Chinese authorities were able to attract $45 billion into the so-called Big Fund, which was mainly aimed at the development of the companies SMIC and YMTC, which later became flagships in their areas of activity within China. In 2019, fundraising for Big Fund II was launched for a total amount of about $28 billion, and now Bloomberg reports on the intentions of the Chinese authorities to form Big Fund III, which will also attract $27 billion from the authorities of individual regions of China and companies with state participation for the development of the national semiconductor industry. industry.
Image source: Huawei Technologies
It is reported that the collected funds will be used to support mainly regional companies, and the participation of the central government of the PRC in the work of the fund will be limited mainly to control over the distribution of funds. The Chinese government more actively filled the two previous funds with financial resources, but in this case this responsibility will be assigned to the municipal authorities of large cities, who want to support local chip manufacturers and developers with money.