China's Big Fund has a history of supporting the semiconductor industry, including both major chip foundries and smaller ventures.

In 2014 and 2019, the country successfully raised substantial sums, RMB 138.7 billion ($19.6 billion) and RMB 204 billion ($28.9 billion) respectively, for semiconductor-focused investment funds.

But despite these investments, China's semiconductor industry has faced challenges in establishing itself as a major force within the global supply chain, especially in the domain of advanced chip production.

Now, China is betting on a new massive RMB 300 billion ($41 billion) investment fund to rev up its semiconductor game with an aim to close the gap with global competitors, especially the U.S. Notably the targeted sum exceeds the amounts raised by similar funds in 2014 and 2019.

The fund, managed by the China Integrated Circuit Industry Investment Fund (Big Fund), will prioritize acquiring advanced chip manufacturing equipment. Details about the fundraising process and contributors remain undisclosed, but it's expected to take several months.

This substantial investment underscores China's determination to become a major player in the semiconductor sector, achieving self-sufficiency amid export controls and national security concerns. It aligns with President Xi Jinping's long-term strategy to secure critical technology infrastructure.