Chip designer MediaTek backs Chinese government microchip fund.

Taiwan-based chip designer MediaTek has announced a $48.9m into a Tsinghua University-backed venture fund aimed at developing China’s microchip industry.

The fund currently sits at $488m, but is expected to grow $1.6bn. Created by the Shanghai City Government and venture firm Summitview Capital, other investors in the fund alongside the university’s Tsinghua Holdings include China-based chip manufacturer Semiconductor Manufacturing International, US-based Knight Capital, and Shanghai Jiading Venture Capital Fund.

The chip fund has been designed to give China a leading…