The former chief executive at the company that manages China’s main semiconductor industry investment fund has been put under investigation by the Central Commission for Discipline Inspection (CCDI), the country’s top anti-corruption watchdog.
The investigation of Lu Jun, who stepped down as head of investment firm Sino IC Capital in late 2020, was announced by the CCDI in a post on its website last Friday. CCDI, the highest internal control institution of China’s Communist Party, did not mention the reason behind its inquiry or the potential penalties that Lu faces.
Beijing-based Sino IC Capital is responsible for managing the assets under the state-backed China Integrated Circuit Industry Investment Fund, also known as the “Big Fund”, which is the largest such enterprise in the country with more than 120 billion yuan (US$17.75 billion) in capital.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Founded in October 2014, the Big Fund serves as China’s primary financing vehicle for investing in chip start-ups and some of the domestic industry’s major enterprises. More than 67 per cent of its investments went to support China’s contract integrated circuit makers, including Semiconductor Manufacturing International Corp and Hua Hong Semiconductor.
The headquarters of Semiconductor Manufacturing International Corp in Shanghai. The mainland’s biggest contract chip maker is an investee company of the state-backed China Integrated Circuit Industry Investment Fund. Photo: Bloomberg alt=The headquarters of Semiconductor Manufacturing International Corp in Shanghai. The mainland’s biggest contract chip maker is an investee company of the state-backed China Integrated Circuit Industry Investment Fund. Photo: Bloomberg>
The CCDI’s investigation of Lu, who had also quit his management role at the China Development Bank last November, may raise speculation about his actions or omissions now under review, and whether these had any impact on the country’s efforts to develop a self-sufficient and competitive semiconductor supply chain.
During an industry summit in December 2019, Lu said the Big Fund had a large amount of fresh capital to continue investing in semiconductor firms and related critical industries, such as 5G mobile communications.
This was not the first time that an executive previously involved with the Big Fund was put under review by the CCDI. Last November, Gao Songtao, formerly a vice-president at Sino IC Capital, was investigated by the CCDI for alleged corruption.
The escalating tech war between China and the US made the Big Fund an integral part of Beijing’s efforts to develop the domestic semiconductor industry’s downstream supply chain, including chip design, advanced materials, packaging and equipment.
Spurred on by Beijing, various Chinese companies have raised their investments in the domestic semiconductor sector. As of March this year, 81 companies listed in mainland China have set up industrial funds, with more than 60 per cent of them targeting mergers and acquisitions in the semiconductor and new energy sectors, according to a report by state-owned newspaper Securities Daily.
The Big Fund has also encouraged local governments across the mainland to ramp up their support for the domestic semiconductor industry. By 2019, various chip industry investment funds in the country had nearly 500 billion yuan in assets, according to an estimate by the China Semiconductor Industry Association.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.
Related Quotes
Turkey can still “freeze” Sweden and Finland’s membership in NATO unless the two countries take steps that meet Ankara’s security demands, Turkish President Recep Tayyip Erdogan said Monday. Last month, Turkey lifted its objection to Sweden and Finland joining the alliance but warned that it would block the process if they fail to extradite suspects with links to outlawed Kurdish groups or the network of an exiled cleric accused of orchestrating a failed coup in 2016.
Brent crude recaptured the major resistance level of $100 after falling down to levels near $95 lowest since March this year.
WASHINGTON (Reuters) -The U.S. Department of Defense is nearing an agreement with Lockheed Martin Corp for around 375 F-35 fighter jets over three years, three sources said on Monday, amid expectations of a price increase for the most common version of the jet due to lower quantities and inflation. Since then, production quantities and know-how have increased, helping the price of the stealthy fifth-generation fighter fall to $79 million as it gained buyers. The handshake agreement would come as the aviation industry gathered for the return of the Farnborough Airshow, aiming for a display of confidence after the devastation of COVID-19, even though the only records likely to be broken at the event in southeastern England are for sweltering temperatures.
Russia has used private mercenaries from the Kremlin's shadowy private military to reinforce its depleted frontline, British intelligence said Monday. In its daily intelligence update, the U.K.'s Ministry of Defense said that members of the Wagner Group had "almost certainly" participated in fighting — especially in the cities Popasna and Lysychansk, which were captured by Russian forces this month.
President Zelensky fired Ukraine's prosecutor general and the head of secret service on Sunday, citing hundreds of treason allegations
The Department of Homeland Security (DHS) used mobile location data to track people’s movements on a much larger scale than previously known, according to new documents unearthed by the American Civil Liberties Union (ACLU). It’s no secret that U.S. government agencies have been obtaining and using location data collected by Americans’ smartphones. In early 2020, a Wall Street Journal report revealed that both Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) bought access to millions of smartphone users' location data to track undocumented immigrants and suspected tax dodgers.
Yevhen Kizilov – MONDAY, 18 JULY 2022, 19:05 Vitalii Kim, head of the Mykolaiv Oblast State Administration, has promised a reward of $100 for information that would assist in capturing Russian artillery spotters in Mykolaiv Oblast.
SEOUL (Reuters) -The United States wants to end its "undue dependence" on rare earths, solar panels and other key goods from China to prevent Beijing from cutting off supplies as it has done to other countries, U.S. Treasury Secretary Janet Yellen said. Yellen, who arrived in Seoul late on Monday, told Reuters she was pushing for increased trade ties with South Korea and other trusted allies to improve the resilience of supply chains and avert possible manipulation by geopolitical rivals. Yellen will map out her concerns in a major policy address in Seoul on Tuesday after touring the facilities of South Korean tech heavyweight LG Corp during the final leg of an 11-day visit to the Indo-Pacific region.
People line up to pay their respects before the funeral of former Prime Minister Shinzo Abe, on July 12, 2022, at Zojoji Temple in Tokyo. AP Photo/Eugene HoshikoFormer Japanese Prime Minister Shinzo Abe’s alleged shooter, Tetsuya Yamagami, told the police that he was motivated by Abe’s connections to the messianic new religious movement known as the Unification Church. Yamagami explained that his mother had made a “huge donation” to the group, and he blamed the church for bankrupting his mother
China's electric-car market has received a fast recharge over recent weeks as banks dropped lending rates for vehicle loans to boost sales of new-energy vehicles (NEVs). More young drivers are taking out loans to buy long-coveted cars, making the sector a new bright spot in China's economy. While overall gross domestic product growth has stalled and the housing market is in distress, the electric-car market looks set for healthy acceleration despite the havoc a two-month lockdown in Shanghai bro
A Tennessee federal judge is blocking the Biden administration from enforcing an executive order designed to protect the LGBTQ community from discrimination in schools and the workplace. U.S. District Judge Charles Atchley Jr. on Friday issued a preliminary injunction that temporarily bars the U.S. Department of Education and the Equal Employment Opportunity Commission from enforcing […]UKRAINSKA PRAVDA – MONDAY, 18 JULY, 15:08 Natalia Humeniuk, the head of the united coordinating press centre of the Defence Forces in the South of Ukraine, has confirmed that the Armed Forces of Ukraine did target the occupiers' ammunition depot in Nova Kakhovka.
The real estate investment platform Arrived Homes, backed by Amazon.com Inc. (NASDAQ: AMZN) founder Jeff Bezos, has launched its largest batch of new offerings with a total of 14 new single-family rental properties. Seven of the 14 rental homes hit the platform last week on July 13, with the remaining seven being available as of today. So far, five of the properties have been fully funded with a total value of about $1.4 million. The rental property investment platform allows individual investor
COEUR D'ALENE, Idaho (AP) — Six of the 31 members of a white supremacist group who were arrested near a northern Idaho pride event last month will be in court on Monday afternoon, facing misdemeanor charges of conspiracy to riot. The Patriot Front members were arrested June 11 with riot gear after a tipster reported seeing people loading up into a U-Haul at a hotel parking lot in Coeur d’Alene, Idaho, police said. Scheduled to appear in court Monday were Josiah Buster and his brother Mishael Buster and Connor Moran, all of Watauga, Texas; Derek Smith of Sioux Falls, South Dakota; Dakota Tabler of West Valley City, Utah; and Justin O'Leary, of Des Moines, Washington.
Nearly five months since President Vladimir Putin ordered the Feb. 24 invasion of Ukraine, Russian forces are grinding through the Donbas region of eastern Ukraine and now occupy around a fifth of the country. Shoigu, one of Putin's closest allies, inspected the Vostok group which is fighting in Ukraine, the defence ministry said.
Stifel's Barry Bannister is standing by his call for a summer rally in the middle of a secular bear market.
The past month has been a busy time for Chinese diplomacy in Africa, with senior officials making dozens of trips to the continent to resolve disputes, strengthen relations and respond to a recent Western charm offensive. In a meeting with Burundian President Evariste Ndayishimiye on Wednesday, the Chinese government's special representative on African affairs, Xu Jinghu, promised China would continue to strengthen bilateral relations with the East African nation in priority sectors such as agri
The family imploded over this.
Some conservative activists are arguing that social emotional learning programs are not a solution to school violence, but a cause.
U.S. stocks give up early gains on Monday after Bloomberg reports that Apple Inc. plans to slow hiring and spending growth in some divisions next year.

source