China Semiconductor Investment Fund
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JunHe has assisted in establishing the third-phase of the China Integrated Circuit Industry Investment Fund, raising RMB344 billion (USD47.5 billion) in the country’s biggest such fund to date.

The third phase of the “big fund” exceeds both its predecessors combined, with RMB138.7 billion raised from the first phase and RMB204.2 billion raised from the second.

The third phase is almost as big as the largest China private equity fund – China Structural Reform Fund – worth RMB350 billion.

JunHe acted as the sole legal adviser, with partners Wei Yingling, Shelley Wang and Kevin Cui leading the team. The law firm also had advised on the establishment of the first and second “big funds” since 2016.

State Council proposed establishing the “big fund” in 2014 to develop the chip industry by attracting market capital.

The Ministry of Finance is the biggest shareholder of the third-phase “big fund”, having invested about RMB60 billion for a 17.44% stake. China Development Bank Capital invested RMB36.1 billion for a 10.5% stake. Meanwhile, Shanghai Guosheng Group holds an 8.7% share, investing RMB30 billion.

For the first time, six state-owned banks chipped into the third phase of the “big fund” – the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and the Postal Savings Bank of China invested a total of RMB114 billion into the third-phase fund, holding a combined 33.14% stake.

The six banks said on Monday that all 19 shareholders signed an agreement to invest in the third-phase fund. The banks added that the National Financial Regulatory Administration had approved their investment.

The state-backed fund is aimed at China’s push for self-sufficiency in semiconductors.

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