[News] Shanghai IC Fund III Reportedly Expands 11-Fold to RMB 6B as China’s Chip Drive Accelerates

China’s push for chip self-sufficiency is gathering pace. According to South China Morning Post, the Shanghai Integrated Circuit Industry Investment Fund III recently raised its registered capital by 5.5 billion yuan (US$794 million) to 6 billion yuan, representing an increase of more than elevenfold as it channels additional funding into Shanghai’s semiconductor firms.

As noted by the report, the fund has introduced two new equity investors: Shanghai State-owned Capital Investment Leading IC Private Equity Investment Fund, which will invest 4.5 billion yuan, and Pudong Venture Capital, backed by the Pudong district government, which is committing 500 million yuan.

The fund could expand further, as the report adds, noting that its first and second phases, launched in 2016 and 2020, each had registered capital of 24 billion yuan, suggesting room for additional scaling.

Shanghai’s IC Expansion Within China’s Broader Funding Push

The Shanghai IC Fund has invested in more than 20 domestic semiconductor firms, including wafer foundries SMIC and HLMC, a subsidiary of Hua Hong Group, as well as ACM Research Shanghai, a manufacturer of semiconductor cleaning equipment, the report states.

As noted by Securities Times, data from the Shanghai Municipal Commission of Economy and Informatization show that Shanghai’s integrated circuit industry generated more than 480 billion yuan in revenue in 2025, with output value in the IC manufacturing segment rising 15.1% year on year.

Across key segments—including chip design, manufacturing, packaging and testing, equipment and materials, as well as EDA/IP—Shanghai has cultivated a group of leading companies in niche industry fields. Among them, 35 companies listed on the STAR Market, ranking first nationwide, Securities Times notes.

The city’s efforts echo those of the China Integrated Circuit Industry Investment Fund, the national initiative known as the “Big Fund,” which was established in 2014 and whose three phases together have accumulated more than 620 billion yuan in registered capital, the South China Morning Post notes. The fund has invested in leading domestic players including SMIC and memory-chip makers YMTC and CXMT, the report adds.

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