China to launch $40 bn state fund to boost chip industry

The target outdoes similar funds launched earlier

- LIKELY THE BIGGEST OF 3 FUNDS LAUNCHED BY BIG FUND

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 US and other rivals.

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.

Its target of 300 billion yuan ($40 billion) outdoes similar funds in 2014 and 2019, which according to government reports, raised 138.7 billion yuan and 200 billion yuan respectively. 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.