JAKARTA - China plans to disburse funds to memory chip maker Yangtze Memory Technologies Co (YMTC) as much as US$1.9 billion or equivalent to Rp29 trillion.
The fresh money comes from the Chinese National Integrated Circuit Industry Investment Fund, a government-backed investment agency also known as the Big Fund.
The magnitude of investment shows China's efforts to shore up domestic chip production amid rising tensions with the US and other countries.
YMTC is known to have been on the US trade blacklist last year, following in Huawei's footsteps and other companies.
Founded in the middle of China's metropolitan city, Wuhan in 2016, YMTC was already one of the recipients of funds during the first phase of the Big Fund, along with some of China's most advanced chipmakers, including Semiconductor Manufacturing International Corp and Hua Hong Semiconductor.
Other new YMTC investors include the Changjiang Industry Investment Group, Hubei Changsheng Development. More than that, YMTC is also the only domestic chip maker that is close to competing with global leaders like Samsung.
Currently, China is focusing on independence as the US seeks to prevent Western technology from being used to modernize China's military.
This week, US President Joe Biden's administration added 37 more entities to the trade bloc list, including the unit of Chinese cloud computing company Inspur.
Inspur is accused of procuring and trying to get US items to support China's military modernization efforts, as quoted by Neowin, Saturday, March 4.
In early October last year, export control rules were issued to restrict US companies from selling advanced semiconductors and equipment needed to several Chinese manufacturers unless they received a special license.
A total of 5,746 companies have been revoked in 2022. Together with the US, Netherlands and Japan have also restricted chipmaker equipment to China.
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