SHANGHAI (Reuters) – SAIC Motor Corp will establish a multibillion-yuan fund with the Shanghai Industrial Technology Research Institute (SITRI) to promote research and production for automotive microchips.
The Chinese state-owned automaker said on its official WeChat account that the fund will also look to invest in automotive electronics start-ups and will later be opened to external funds.
While China is the world’s largest automotive market, it mainly relies on imports for automotive chips and local semiconductor manufacturers currently produce only 5% of the global market, SAIC said.
A global shortage of semiconductors has hit automakers around the world, delaying production and hitting sales.
(Reporting by Brenda Goh; Editing by David Goodman)