A $29 billion Chinese investment fund could spell danger for the reign of Intel and AMD

China is looking to invest heavily in domestic chip manufacturing in order to reduce its dependency on U.S. technology.

China is currently the world’s biggest chip importer – a title it would appear the Chinese would like to shed.

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According to Bloomberg, a new multi-billion dollar investment fund will go towards creating a domestic semiconductor supply chain – from chip design to manufacturing.

The fund receives most of its cash from state organisations – with the Chinese Ministry of Finance and China Development Bank contributing over $7 billion towards the $28 billion investment fund.

China’s efforts appear to be picking up speed in light of the ongoing rigmarole over its relationship with the U.S – including the Huawei Android ban.

While Intel and AMD have sat atop of the chip mountain for some time now – although they have seen challengers emerge, such as Qualcomm – the companies may be looking at this Chinese investment with trepidation.

A Chinese company effectively contending with the big two could be a long way off but we have seen products from China disrupt other technology markets in recent times.

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Mobile phone companies like Huawei, Oppo and Xiaomi have grown in popularity in the West – with Huawei becoming one of the most popular Android phone manufacturers.

Huawei’s disruption has earned them plenty of backlash – including increased oversight in how much the company should be allowed to integrate its technology and services with Western infrastructure.

The scepticism of Huawei and China came to a head with the launch of the Huawei Mate 30 and Mate 30 Pro – the first device unable to run Google Play Services due to U.S. sanctions.

Instead, Huawei has introduced Huawei Mobile Services as its first attempt to counteract its severed relationship with Google. The next step appears to be Harmony OS – Huawei’s potential Android alternative – but its launch could be years away.

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