COMPANY NEWS IN BRIEF
China launches R874 billion chip fundChina has set up the country’s largest-ever semiconductor investment fund to propel development of the domestic chip industry, the latest effort from Beijing to achieve self-sufficiency as the US seeks to restrict its growth.
The third phase of National Integrated Circuit Industry Investment Fund has amassed 344 billion yuan (R874 billion) from the central government and various state-owned banks and enterprises, including Industrial & Commercial Bank of China Ltd., according to Tianyancha, an online platform that aggregates official company registration information.
The fund was incorporated on May 24.
The largest shareholder is China’s Ministry of Finance, while investment firms owned by local governments in Shenzhen and Beijing also contributed.
The Shenzhen government has been funding several chipmaking plants in South China’s Guangdong province in an attempt to free Huawei Technologies from years of US sanctions that cut it off from a great number of imported semiconductor components.
Superpowers led by the US and European Union have funnelled nearly US$81 billion toward cranking out the next generation of semiconductors, escalating a global showdown with China for chip supremacy.
China was also a leading spender in the past decade or so, using state capital to fund local chipmakers such as Semiconductor Manufacturing International.
-BLOOMBERG-
Elon Musk's xAI valued at US$24 bln after fresh funding
Elon Musk's AI startup xAI raised US$6 billion in series B funding, reaching a post-money valuation of US$24 billion as investors bet big on challengers to companies like OpenAI in the intensifying AI race.
The funding round was backed by investors including Andreessen Horowitz and Sequoia Capital, the company said in a blog post on Sunday.
The company's pre-money valuation was US$18 billion, Musk said in a post on X.
-REUTERS-
With no flights before election, UK's Rwanda migrant scheme may never get off the ground
The controversial plan to fly thousands of asylum seekers from Britain to Rwanda may never get off the ground, after Prime Minister Rishi Sunak said on Thursday that there would be no deportations before a national election in July.
After taking office in October 2022, Sunak made the plan to send migrants who arrived in Britain without permission to the East African nation one of his flagship policies, saying it would put an end to thousands of asylum seekers coming on small boats across the Channel.
The controversial plan to fly thousands of asylum seekers from Britain to Rwanda may never get off the ground, after Prime Minister Rishi Sunak said on Thursday that there would be no deportations before a national election in July.
After taking office in October 2022, Sunak made the plan to send migrants who arrived in Britain without permission to the East African nation one of his flagship policies, saying it would put an end to thousands of asylum seekers coming on small boats across the Channel.
-REUTERS-
Shares of China Evergrande's EV unit soar after liquidators' stake sale deal
Shares of China Evergrande New Energy Vehicle Group more than doubled on Monday as trade resumed after the company said liquidators had agreed on behalf of key shareholders to sell a stake in the electric vehicle (EV) maker.
Shares of embattled developer China Evergrande's EV unit soared as much as 113% to HK$0.81, their highest since September 22, becoming the top gainer on the Hong Kong bourse, and last stood up 79%, following the May 17 trade halt.
The non-binding deal by liquidators acting for China Evergrande Group, Evergrande Health Industry and Acelin Global provides for a third-party buyer to take a stake of 29% in the unit, with an option for 29.5% more, the EV unit said on Sunday.
The three collectively hold 58.5% of the cash-strapped EV unit, whose factory in the northern city of Tianjin stopped production at the start of 2024.
The EV unit said the term sheet also mentioned that the potential purchaser would provide a line of credit to fund its operation and business development.
Last week, China Evergrande New Energy Vehicle said its unit had received a letter from local administrative bodies demanding repayment of 1.9 billion yuan ($262 million) in subsidies and incentives.
Earlier this year, China Evergrande, the world's most indebted property developer, was ordered to be liquidated after it was unable to offer a concrete restructuring plan, more than two years after it defaulted on its offshore debt.