Exclusive: China to launch new $40 bln state fund to boost chip industry, sources say

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Exclusive: China to launch new $40 bln state fund to boost chip industry, sources say
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China is set to launch a new state-backed investment fund that aims to raise about $40 billion for its semiconductor sector, two people familiar with the matter said, as the country ramps up efforts to catch up with the U.S. and other rivals.

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It is likely to be the biggest of three funds launched by the China Integrated Circuit Industry Investment Fund, also known as the Big Fund.

One main area of investment will be equipment for chip manufacturing, said one of the two people and a third person familiar with the matter. In October, the U.S. rolled out a sweeping sanctions package that cut China's access to advanced chipmaking equipment and U.S. allies Japan and the Netherlands have taken similar steps.China's finance ministry is planning to contribute 60 billion yuan, said one person. Other contributors could not be immediately learned.

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