By Greg Gao

(JW Insights) Aug 15 -- Eastern China’s Zhejiang Province is planning to launch a semiconductor fund with a target scale of RMB 5 billion ($687 million) to promote the chip industry, according to the public information released by the Financial Bureau of Zhejiang province.

As a part of Zhejiang’s strategic advanced manufacturing cluster construction initiatives, Zhejiang Provincial Industrial Fund (referred to as the Provincial Fund) recently announced its intention to collaborate with state-owned investment entities and social capital in Shaoxing to establish the Zhejiang Integrated Circuit Industry Fund.

This fund will focus on supporting industries primarily within the integrated circuit design, manufacturing, equipment, and materials sectors, aiming to play a pivotal role in the construction of Zhejiang’s distinctive modern industrial system.

The registered location of the Zhejiang Integrated Circuit Industry Fund is Shaoxing City. The selection of fund management institutions has been initiated since August 11. The Provincial Fund’s contribution will not exceed 30% of the subscribed size, or the contribution amount will not exceed RMB1.5 billion. The combined contribution of state-owned entities in Shaoxing shall not be less than the contribution amount of the Provincial Fund, with the remaining portion to be raised by the selected fund management institution, according to a local media report.

As of the end of June this year, the Provincial Fund has a capital of nearly RMB40 billion($5.5 billion), with 99 funds and collaborated with over 80 institutions, and invested in more than 1,300 projects within Zhejiang Province.