BEIJING, Apr 25 (Reuters): China is looking for billions of dollars in funds to propel its domestic ambitions in chips tocut a heavy reliance on imports, and has invited overseas investors to help it get there.
The country's industry ministry said on Wednesday that it welcomed foreign enterprises to invest in its top state-backed semiconductor fund, even as tensions simmer over tech transfers between China and the United States.
China is looking to accelerate plans to develop its semiconductor market amid a fierce trade stand-off with the United States and a recent ban on U.S. sales, including of American chips, to ZTE Corp.
China's National Integrated Circuit Investment Fund is now putting together a second fund to support the sector, a Ministry of Industry and Information Technology (MIIT) official said.
"We welcome foreign enterprises to participate," MIIT spokesman Chen Yin said at a press conference in Beijing.
The fund, which raised about $22 billion previously, has been a target for U.S. politicians concerned that Chinese firms, flush with state money, could challenge U.S. chip giants like Qualcomm Corp for whom China is a key market.
The United States Trade Representative referenced China's semiconductor roadmap, which includes national funding, in a trade report that authorized U.S. President Donald Trump to levy up to $100 billion in tariffs against the country.
Jack Ma, the founder of tech giant Alibaba, said in Japan on Wednesday that China needed to control its "core technology" like chips to avoid over-reliance on U.S. imports.
Alibaba last week said it had bought Chinese microchip maker Hangzhou C-SKY Microsystems, though Ma said the timing of the deal was not linked to U.S.-China trade tensions.
"We believe the internet of things is the future ... most things that have electricity will have chips inside. So we need cheaper chips, effective chips, inclusive chips that can be everywhere," Ma said during a live-streamed event at Tokyo's.
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