China corruption: executive who oversaw country’s main semiconductor industry fund under investigation
The investigation of Lu Jun, former chief executive at investment firm Sino IC Capital, was announced by the Central Commission for Discipline InspectionSino IC Capital is responsible for managing the assets under the China Integrated Industry Investment Fund, also known as the ‘Big Fund’SemiconductorsJiaxing LiPublished: 10:00pm, 18 Jul, 2022Why you can trust SCMP
The former chief executive at the company that manages China’s main semiconductor industry investment fund has been put under investigation by the Central Commission for Discipline Inspection (CCDI), the country’s top anti-corruption watchdog.The investigation of Lu Jun, who stepped down as head of investment firm Sino IC Capital in late 2020, was announced by the CCDI in a post on its website last Friday. CCDI, the highest internal control institution of China’s Communist Party, did not mention the reason behind its inquiry or the potential penalties that Lu faces.Beijing-based Sino IC Capital is responsible for managing the assets under the state-backed China Integrated Circuit Industry Investment Fund, also known as the “Big Fund”, which is the largest such enterprise in the country with more than 120 billion yuan (US$17.75 billion) in capital.Founded in October 2014, the Big Fund serves as China’s primary financing vehicle for investing in chip start-ups and some of the domestic industry’s major enterprises. More than 67 per cent of its investments went to support China’s contract integrated circuit makers, including Semiconductor Manufacturing International Corp and Hua Hong Semiconductor.
The CCDI’s investigation of Lu, who had also quit his management role at the China Development Bank last November, may raise speculation about his actions or omissions now under review, and whether these had any impact on the country’s efforts to develop a self-sufficient and competitive semiconductor supply chain.