China's chip fund adapts to counter US restrictions
China's Big Fund III, the country's main chip investment group, is switching gears to focus on homegrown tech like lithography and semiconductor design software.
This shift comes as the US tightens access to key chipmaking tools, which are mostly controlled by companies like ASML and American giants Cadence and Synopsys.
Even though the fund didn't reach its massive 344 billion yuan ($48 billion) goal, it's still gearing up for big investments with a longer timeline.
China's Big Fund III is now targeting specific weak spots
Big Fund III is now targeting specific weak spots in China's semiconductor supply chain—think of it as plugging leaks so local chipmakers can compete globally.
The plan includes setting up sub-funds to spot promising projects and help them grow.
Backed by the government and state-owned firms, this move is part of President Xi Jinping's push to break free from foreign tech roadblocks and boost China's AI game despite mounting global pressure.