Massive Chinese chip project procures additional $5 billion

China stepped up its efforts to increase the domestic supply of critical technology with a massive semiconductor plant project and an additional $39 billion yuan ($5.3 billion).

Based in Hefei, Anhui Province, Changxin Xinqiao Storage Technology is a semiconductor company that will run the 150 billion yuan factory. Credit information provided by Qichacha, a domestic research firm, indicates that the company recently raised the latest funding.

The principal investor in the new funding was China Integrated Circuit Industry Investment, a state-backed organization that supports the growth of the country's chip industry. The "Big Fund," as it is also called, owns a 33 percent share in Changxin Xinqiao.

With growing tensions with Washington, Beijing is pushing for the development of a semiconductor supply chain that is immune to U.S. sanctions. Changxin Xinqiao will utilize the funds to expedite the factory's construction.

As per the Chinese media, Changxin Xinqiao intends to manufacture dynamic random-access memory (DRAM) chips at the site. DRAM chips find applications in computers and several other gadgets. With the newest capital infusion, the company will expedite the equipment procurement and other procedures, having already begun bidding for the new factory's equipment. Reporters were informed by insiders that it intends to begin mass production in three years.

Another significant semiconductor manufacturer that produces DRAM, ChangXin Memory Technologies (CXMT), has a production facility in Hefei. CXMT is a shareholder in a business that owns the majority of Changxin Xinqiao.