Chinese semiconductor stocks were in rally mode on Monday after reports that the government has set up its biggest ever fund worth nearly $48 billion to support the industry.
Shares of chip making giant Hua Hong Semiconductor 1347, 3.94% surged 11%, Semiconductor Manufacturing International Corp. 981, 1.82% climbed 7%, NAURA Technology 002371, 2.19% rose nearly 6% and GigaDevice Semiconductor 603986, 3.13% gained 3.6%.
Raising around 344 billion yuan ($47.49 billion) the third phase of the China Integrated Circuit Industry Investment Fund, doubles what was drummed up in 2014 and 2019, according to Dow Jones and other media reports, citing data technology platform Tianyancha, which gathers company registration information.
China’s Ministry of Finance is reportedly the biggest shareholder, with other state-owned banks and enterprises, such as Industrial & Commercial Bank of China Ltd. also contributing to the fund that was registered on May 24.
The latest effort by Beijing to shore up its industry comes as the U.S. continues to press against what it views as unfair cheap exports to global markets from China. A fresh round of measures announced recently by the Biden administration is expected to boost tariffs on semiconductors to 50% from 25% by 2025.