Xi Jinping

Phase 1 of the National Integrated Circuit Industry Investment Fund raised billions from the Ministry of Finance and China Development Bank Capital. Between ...

But just as the likes of Intel Corp. and Micron Technology Inc. jostle for a slice of US government support, the perils of relying upon public money are sending shock waves through China’s chip industry. In recent days, corruption investigations have engulfed top officials in a sector that is integral to President Xi Jinping’s “Made in China 2025” ambitions. At least three senior executives from a $20 billion state-owned private equity fund, set up in 2014 to invest mainly in chip manufacturing, were detained; so was Xiao Yaqing, the head of the agency in charge of the nation’s industrial policy and the most senior sitting cabinet official ensnared in a disciplinary probe in almost four years.