Advertisement
China is powering ahead with its tech development blueprint, it’s just not talking about it
- The profile has been lowered, yet ‘Made in China 2025’ continues to channel state-sponsored investment into the technology sector
- The state-backed China Integrated Circuit Industry Investment Fund has invested in more than nine listed firms since April last year
Reading Time:3 minutes
Why you can trust SCMP
Beijing has accelerated key technology investments since the outbreak of the trade war with the US, pushing ahead with its national strategy plan “Made in China 2025” (MIC2025), even as it tones down references to the policy amid international criticism, according to analysts.
Advertisement
The China Integrated Circuit Industry Investment Fund Co, China’s state-backed financier also known as the “Big Fund”, has injected money into strategic areas of China’s technology supply chain, while focusing on the microchip industry.
More than nine listed firms have disclosed new investment made by the Big Fund since April last year, according to stock filings. These include Shenzhen listed Changchuan Technology, a semiconductor test equipment company, and GigaDevice Semiconductor, a Shanghai listed Integrated Circuit flash memory chip designer.
However, these investments are only “tip of the iceberg” of the investment made by the Big Fund, said Ng Sze Ho, a tech analyst with China Renaissance Securities. “In reality, the fund is leading others, like industry funds raised by local governments, and private equity funds, into China’s chip industry.”
The actual investment could be several times bigger than the figures reported in stock filing disclosures, he said.
Advertisement
Advertisement