CHINA’S HUNGER for homemade chips is insatiable. In May it was revealed that the government had launched the third iteration of its “Big Fund”, an investment vehicle designed to shore up the domestic semiconductor industry. The $48bn cash infusion is aimed at expanding the manufacture of microprocessors. Its generosity roughly matches similar packages from America ($53bn) and the EU ($49bn), both of which are also trying to encourage the expansion of local chipmaking.
Chinese chipmakers are in a tough spot. In October 2022 America’s government restricted the export to China of advanced chips and chipmaking gear made using American intellectual property—which is to
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