China Life sets up semiconductor fund amid Beijing’s call for ‘patient’ capital

The US$737 million yuan fund for semiconductor investment to support chip firms with ‘substantial technical know-how and resources’ Companies backed by the state and provincial governments in China have announced new funds to focus on the semiconductor industry, which requires a large amount of time and resources to grow, at a time when the country is in need of more “patient capital”. China Life Insurance, the country’s largest life insurer, backed by the State Council, said it would establish a partnership with total capital of 5 billion yuan (US$737 million) that “principally invests in companies operating in the semiconductor industry”, according to Friday filings to both main bourses in Hong Kong and Shanghai. The fund, jointly formed with a China Life sister company, would finance chip design firms and others that have “accumulated substantial technical know-how and resources in the semiconductor industry, with distinctive core technological advantages and a well-established research and development system”, according to the filings.

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