TLDR:
- The gap between the US and China in venture capital for computer chips is widening.
- China is prioritizing the development of its semiconductor industry.
In 2023, China received 75% of global semiconductor startup funding, while the US only received 11%. China’s government is launching a new investment vehicle, the Big Fund, with the aim of raising $40 billion for chip manufacturing. Notable Chinese chip startups include SJSemi and Biren Technology, which have received significant funding.
The US passed the CHIPS Act in 2022 to reduce reliance on China and provide subsidies for domestic semiconductor manufacturing. However, the US’s share of global chip VC funding decreased slightly last year. The subsidies are primarily focused on opening or expanding US chip factories.
