Shanghai has announced the launch of the "Three Leading Industry Parent Funds," targeting integrated circuits (IC), biopharmaceuticals, and AI.
The three funds amount to RMB 1,000 billion (US$13.7 billion).
IC, AI, and biopharmaceuticals
According to reports from Chinese media outlet Cailianpress and official announcements from the Shanghai municipal government, RMB 450 billion will be allocated to the IC industry parent fund. It will focus on investments in IC design, manufacturing, packaging, testing, equipment, and components.
The AI industry parent fund, totaling RMB 225 billion, will prioritize AI chips, software, autonomous driving, and robotics. The biopharmaceuticals parent fund will be RMB 215 billion.
Industrial directives straight from the top
Wen-rong Hu, Chairman of the Shanghai Municipal Committee of the Chinese People's Political Consultative Conference (CPPCC), emphasized that the development of this trio of fields is a "strategic task assigned to Shanghai by the central government."
He highlighted the importance of "new quality productive forces" and "accelerating the transformation of old and new growth drivers."
The funds will be managed by the State Development & Investment Corporation (SDIC), which will establish professional investment teams to align with market trends and accelerate innovation. Key investors include the China Development Bank, Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Bank of Communications, among nine central enterprises.
SDIC, with a registered capital of RMB 100 billion, is a major state-owned capital investment platform in China. The company focuses on significant industrial investments, connecting government resources with social capital to enhance marketization and competitiveness in the industry.
By the end of 2023, Shanghai had established nearly 600 diverse science and innovation hubs, according to SHINE news. These included 65 state-level science and technology business incubators, 60 new public service platforms for Internet-based services, and 14 national university science and technology parks.
The total area of these facilities covered 4,128,600 square meters, accommodating over 33,000 startups and incubates.
