SHENZHEN has established a 5 billion yuan (US$694 million) investment fund for the semiconductor and integrated circuit industry.

The move reflects the city’s commitment to fostering the self-reliance of the semiconductor industry through expanded research and development, Chinese-language media reported. The fund also addresses the city’s need to accelerate industry upgrades.

The 5-billion-yuan fund is managed by Shenzhen Capital Group (SCGC), with SCGC and Shenzhen Major Industrial Investment Group serving as general partners, the Securities Times reported Tuesday.

The fund primarily targets key semiconductor and integrated circuit projects in Shenzhen, including leading enterprises in specialized segments and other initiatives that contribute to strengthening the city’s semiconductor industry chain.

Shenzhen has been ramping up efforts to boost its semiconductor industry through investment funding. At a press conference held by the Shenzhen Municipal Government last October, an official from the city’s Development and Reform Commission said that Shenzhen was planning a 10-billion-yuan municipal investment fund for the semiconductor and integrated circuit industry.

As of October 2024, a total of 38 integrated circuit-related funds had been established with support from municipal guidance funds and leveraged private capital, reaching a combined scale of more than 100 billion yuan, according to the government official.

Shenzhen is not alone in establishing a fund for the semiconductor industry. Cities such as Shanghai, Wuhan in Central China’s Hubei Province and Wuxi in East China’s Jiangsu Province have set up their own semiconductor investment funds as the nation strengthens support for the advanced manufacturing industry.(SD-Agencies)