2023-09-07 04:43:47
all about china
China is still willing to invest in the country’s chip manufacturing industry. That’s what the most recent round of funding from GTA Semiconductor – a Chinese maker of automotive chips – made clear.
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GTA Semiconductor, a Chinese manufacturer of automotive chips, has secured a funding round of around $1.8 billion, with much of it being funded by China; external dependence on the production of these components, published a newspaper supported by the government;With this contribution, GTA Semiconductor accumulated more than US$ 2.7 billion in less than two years, mainly from state funds;The company received support from state-owned capital companies of risk, and this round is seen as one of the biggest domestic borrowings of 2023 in China, amid the country’s efforts to bolster its semiconductor industry.
This is because a large part of this round – of around US$ 1.8 billion (approximately R$ 9 billion) – from GTA, one of the largest manufacturers in the country (in terms of production), was financed by China itself, according to the Securities Times (via Reuters), a newspaper supported by the government.
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The media outlet noted that the large amount raised by GTA Semiconductor underscores Beijing’s commitment to supporting domestic manufacturers amid an ongoing effort to reduce its dependence on external chip manufacturing.
Chip investment in China
(Image: Juan D./Pixabay)
With this capital injection, GTA Semiconductor, headquartered in Shanghai, accumulated in less than two years more than US$ 2.7 billion (R$ 13 billion), mainly from state funds, according to the vehicle.
The company has received backing from state-owned venture capital firms such as Spinnotec, also based in Shanghai, which first announced the $1.8 billion funding round earlier this week, without specifying the entities involved.
The amount, which some Chinese media have described as one of the biggest domestic funding rounds of 2023, comes as China prepares to launch a new state-backed investment fund.
The goal is to raise around US$ 40 billion (R$ 200 billion) for its semiconductor sector, as reported by the Reuters this week. However, the agency was unable to determine whether GTA Semiconductor’s latest fundraising is related to this new fund or not.
Although most cars use chips that are not technologically advanced, the replacement rate of these chips by domestic manufacturers in China is less than 10%, making it a target for more investment in the future, the government-backed newspaper said.
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