Shanghai's three leading industry funds of funds unveiled the third batch of selected sub-funds on Jan 26, aiming to further strengthen the city's integrated circuit, biomedicine, and artificial intelligence sectors.

A total of 17 sub-funds were selected, including four in integrated circuits, seven in biomedicine, and six in artificial intelligence. Together, they plan to invest a total of 4.71 billion yuan ($677 million), leveraging a combined fund size of 22.89 billion yuan.

The selection process began with a public announcement on July 28, 2025, and attracted 53 applicant organizations.

The FoFs are managed by Shanghai SSCI Leading Private Equity Fund Management, a wholly-owned subsidiary of Shanghai State-owned Capital Investment Co Ltd.

Designed to channel capital into strategic areas, the FoFs aim to foster an "ecological rainforest" across the industrial chain, serving as a key pillar of Shanghai's economic development.

The four selected integrated circuit sub-funds plan to invest 1.4 billion yuan, achieving a fivefold amplification effect. They have identified 41 potential investment projects in Shanghai, with planned investments exceeding 3 billion yuan, covering areas such as memory storage, AI chips, core components and materials, high-end equipment, and advanced packaging.

The seven biomedicine sub-funds plan to invest 1.74 billion yuan, with an amplification factor of 3.9. Nearly 30 potential projects have been identified in Shanghai, with planned investments exceeding 1 billion yuan. These projects span gene and cell therapy, radiopharmaceuticals, brain-computer interfaces, and synthetic biology.

The six artificial intelligence sub-funds plan to invest approximately 1.57 billion yuan, generating an overall amplification factor of approximately 5.8. They have identified 44 potential projects in Shanghai, focusing on basic models and algorithms, embodied intelligence and robotics, AI for science, intelligent terminals, and AI applications.

To date, Shanghai's three leading industry FoFs have invested approximately 41 billion yuan, leveraging nearly 200 billion yuan in social capital.

Source: Shanghai Observer