Chinese semiconductor industry

Depends. Some the goverment, some the investors, some the individuals companies and some is paid by collaboration between them, for example AMEC and piotech both develop parts for plasma technology one for etching another for deposition, is just cheaper for both to codevelop share parts. There is another collaboration between Naura, multiple companies including SMEE to codevelop, share the cost of R&D, share parts and do research on common technology.
Some of the goverment money is shared between research institutions and companies. for example project n02, Zhejiang and CHEERTECH, Tsinghua and UPrecision, CIOMP and Guowang, RSLASER and CAS. Chinese research institutions get patent royalties.
There is the case of tools that the goverment doesn't have the luxury to leave it to the private sector such as lithography, the goverment need to fund end-end, there is not way from heaven to hell and back that any company in China will risk in such complex front-end machines and more that ASML is still in the Chinese market. SMEE on their own would prefer to sell cost effective packaging machines and low end lithography.
At the end, if China semiconductor sector do well avoiding US crap that means that the Chinese electronics and software industry will also do well. And that means more taxes and less deficits. So it will paid for itself at the long end​

Wanye Enterprises disclosed an investment plan and related transaction announcement, planning to use its own funds of 400 million yuan to subscribe for the second phase (preparation) of the Shanghai Semiconductor Equipment Materials Industry Investment Fund. The general plan of the fund is simulated at 2.02 billion yuan, and it is planned to be established by Shanghai Semiconductor Equipment Materials Industry Investment Management Co., Ltd.
According to the disclosure, in order to speed up the pace of transformation, deepen the layout of semiconductor equipment, materials and components, and build a leading domestic integrated circuit equipment material company, Wanye Enterprise plans to subscribe for the second phase of the Shanghai Semiconductor Equipment Material Industry Investment Fund with its own funds of 400 million yuan ( chip) shares. The total size of the fund is expected to be 2.02 billion yuan, and the fundraising scale is expected to reach 1.5 billion yuan. The first fundraising can be completed, and the remaining funds are expected to be completed before June 30, 2023. Subsequent fundraising.
The fund mainly focuses on the fields of semiconductor equipment, materials and spare parts, and can take into account the upstream and downstream of the semiconductor industry chain such as semiconductor design, digital economy, artificial intelligence, and new energy, as well as other related fields. Among them, the proportion of investment in the field of semiconductor equipment, materials and spare parts is not less than 60%.
At present, the main potential investors of the above-mentioned funds include Shanghai Guosheng (Group) Co., Ltd., Shanghai Qingpu Development (Group) Co., Ltd., Jiangxi Jingdezhen Guokong Industrial Fund of Funds Partnership (Limited Partnership) and other institutions.
This subscription is within the plan. Wanye Enterprise once disclosed in its semi-annual report that it will continue to strategically lay out the semiconductor equipment and material track in the future. At present, the company has superimposed a variety of front-end equipment such as etching machines, rapid heat treatment, and film deposition on the basis of the original ion implanter, forming a "1+N" platform model. Subsidiary Compart Systems) as a core supplier of semiconductor components has mature experience in serving the world's top semiconductor equipment companies. While improving the process chain, it has realized the coordination of the upstream and downstream industrial chains. The company's platformization process is expected to continue to accelerate.
Talking about the purpose and specific impact of this connected transaction, Wanye Enterprise believes that: First, it is in line with the company's strategic positioning and is conducive to accelerating strategic transformation. The company is unswervingly promoting strategic transformation in the field of integrated circuits. Participating in the establishment of the second phase fund will help the company focus on semiconductor equipment, materials and core spare parts to expand its layout; The upstream and downstream resources of the integrated circuit industry are actively looking for upstream and downstream mergers and acquisitions of integrated circuit equipment and materials through the method of "extensive mergers and acquisitions + industrial integration". Third, the fund manager is a professional investment management team in the field of integrated circuits.


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