China's Chongqing to set up $7.3 bn semiconductor fund - Xinhua

SHANGHAI, Sept 1 (Reuters) - China’s southwestern city of Chongqing plans to establish a 50 billion yuan ($7.3 billion) fund to help develop the semiconductor industry, the official Xinhua news agency said Saturday.

The fund would provide up to 20 million yuan to integrated circuit projects in which investment of up to 500 million yuan has been committed, and up to 5 million yuan to projects in which investment of up to 20 million yuan has been committed, Xinhua said.

Chongqing would also provide up to 20 million yuan of research and development support a year to a national-level integrated circuit innovation centre and establish a public service platform to provide companies with services including automated electronic design tools and an intellectual property database at cost, the report said.

Beijing has made the semiconductor sector a priority under its “Made in China 2025” strategy, with a state-backed semiconductor fund providing support to the domestic chip sector to help cut a reliance on imports.

$1 = 6.8300 Chinese yuan Reporting by Andrew Galbraith Editing by Edmund Blair