Commentary: Why Private Investors’ Cooling on Semiconductors Is a Problem
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China’s semiconductor investment boom is showing signs of cooling.
There was a time when market-oriented investors played a vital role in semiconductor funding, even with the establishment of the Big Fund by the central government in 2014. Nowadays, their waning enthusiasm has set off alarms for the semiconductor industry, which has long seen them as a financial lifeline.

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- Market-oriented investors are reducing semiconductor investment, contributing only about 25% of sector funding, while state investors' involvement grows but shifts toward relocating existing projects.
- Tighter IPO regulations and high risks in technology breakthroughs deter private investors, leading to 49 dropped IPO applications in H1 2025.
- To revive private investment, policy reforms are needed to encourage risk-taking, improve asset exit mechanisms, and foster cooperation between state and market actors.
- ICwise
- ICwise is a semiconductor research company. Gu Wenjun, the chief analyst at ICwise, provided an analysis of current investment trends in China's semiconductor industry.
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