By Michelle Cheng

BEIJING - Following American export controls on AI chips, China has been busy building its semiconductor industry.

When it comes to venture capital for computer chips, the gap between the US and China has never been wider.

In 2023, the US’s share of global semiconductor startup funding was just 11%, versus 75% for China, according to a recent report from PitchBook, a market research firm. PitchBook defines semiconductor startups as companies working on chip design and manufacturing as well as production and equipment.

In the wake of tighter US export controls on AI chips from manufacturers like Nvidia and AMD, China has made building its semiconductor industry a priority. It’s reportedly launching a new state-backed investment vehicle, called the Big Fund, that aims to raise about $40 billion for chip manufacturing. China’s president, Xi Jinping, has long stressed the country’s need to achieve economic self-sufficiency, especially in tech.

Notable Chinese chip startups include SJSemi, which has raised $1 billion to date, and Biren Technology, which has $921 million in funding, including a $280 million government investment, according to PitchBook.