China has officially launched the National Artificial Intelligence Industry Investment Fund, contributing a total of 60.06 billion yuan to drive AI industry development, according to a report from the Securities Times on Monday (Jan. 20).
The partners of the fund include Third Phase of the National Integrated Circuit Industry Investment Fund (Big Fund Phase III) and Shanghai Guozhitou Equity Investment Management Co.
Big Fund Phase III, with a registered capital of 344 billion yuan, has already invested in critical semiconductor-focused initiatives like Huaxin Dingxin Fund and Guotou Jixin Fund, amounting to 93.1 billion and 71.1 billion yuan, respectively. Over the years, Big Fund has evolved from supporting downstream semiconductor manufacturing (Phase I) to upstream areas such as semiconductor equipment and materials (Phase II).
With the rapid growth of AI technology, Phase III now expands its focus to AI-relevant semiconductor fields, particularly computing power chips and HBM storage chips. Analysts see these components as crucial to future AI development, predicting them to be significant investment targets for the fund.
This initiative underscores China’s strategy of bolstering its semiconductor ecosystem while addressing challenges in global technology competition. By targeting AI-related semiconductor innovations, the fund aims to ensure sustained advancements in computing capabilities and domestic semiconductor production.
Liu Gang, Chief Economist at the Chinese Institute of New Generation AI Development Strategies, told the Global Times that the new investment fund is crucial for accelerating AI industry growth in China, adding that “increased capital inflow” is expected to “further enhance the sector” this year.
Other government-Backed AI Investment Funds worldwide include: USA: National Artificial Intelligence Initiative Act (2020). The U.S. government established funding mechanisms to support AI research and infrastructure, including grants for universities and partnerships with private sectors, amounting to $1 billion annually. Canada: Pan-Canadian Artificial Intelligence Strategy (2017): Invested CAD 125 million in research and commercialization, funding centers like Mila and Vector Institute to foster AI leadership. Japan: Moonshot R&D Program (2018): Committed ¥100 billion to AI and robotics, targeting societal applications such as healthcare automation and disaster response. United Kingdom: UK AI Sector Deal (2018): Invested £1 billion, blending public and private funds, into AI research hubs, innovation, and talent development.