Chip war heats up: China to launch $40B state fund for semiconductor manufacturing

China is reportedly preparing to launch a new $40 billion investment fund backed by the government to subsidize its semiconductor industry as the country tries to catch up to the U.S. and other rivals in the race to dominate high-end chip production.

The roughly $40 billion investment is likely to be the biggest of three launched by the China Integrated Circuit Industry Investment Fund, also known as the Big Fund, according to a report by Reuters that cited people familiar with the matter. The fund’s target is larger than similar funds launched in 2014 and 2019 and will reportedly focus investment on equipment used in manufacturing advan