China’s southern technology hub of Shenzhen has set up a dedicated semiconductor industry fund worth 5 billion yuan (US$692.5 million), managed by the state-owned Shenzhen Capital Group, as top-tier cities across the country race to boost chip self reliance amid geopolitical tensions with the US.
The new fund, under the name of Saimi – pronounced “semi” – draws its capital primarily from the Shenzhen municipal government guidance fund, and the Shenzhen Longgang District’s guidance fund. Shenzhen Capital Group and Shenzhen Major Industry Investment Capital, the latter under the Shenzhen Major Industry Investment Group, are both general partners in the fund.
Officially registered in the city’s Longgang district on April 29, the initial contributed capital totalled 3.6 billion yuan, according to corporate data from Tianyancha. Shenzhen’s municipal finance bureau is the controlling shareholder, holding a 69.4 per cent stake.
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Shenzhen’s latest move underscores its strategy to leverage state-backed capital and use targeted industrial policies to support the semiconductor sector.
In October 2024, city officials said during a local chip industry conference that Shenzhen had already established 38 funds related to integrated circuits (ICs), collectively surpassing 100 billion yuan in value, and that the city was accelerating the establishment of new IC funds worth 10 billion yuan.
Shenzhen-based SiCarrier, a chip equipment maker with ties to Huawei Technologies that attracted widespread attention at a major trade event in March, is one example of a company backed by Shenzhen money.
It is wholly owned by Shenzhen Major Industry Investment Group, which has also supported the establishment of production lines in the city for chip firms such as Semiconductor Manufacturing International Corp and China Resources Microelectronics.
Shenzhen is among the top-tier Chinese cities aggressively leveraging financial resources to advance key technology sectors, aligning closely with the nation’s strategic emphasis on “new productive forces” amid an intensifying tech war with the US.
In March, Shanghai established the third phase of its Integrated Circuit Industry Investment Fund with registered capital of 530 million yuan, following two earlier phases with total registered capital exceeding 40 billion yuan.
In the same month, Shanghai also unveiled plans for a 100 billion yuan “fund of funds” focusing on key technology sectors, including artificial intelligence, biotechnology and semiconductors.
Separately, China’s Big Fund – the state-owned China Integrated Circuit Industry Investment Fund, which supports chip industry investments – established its third phase last year, with registered capital of 344 billion yuan.
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