The China Integrated Circuit Industry Investment Fund – also known as the Big Fund – is planning on launching its third and largest investment fund in the chip industry, targeting a 300bn yuan investment. 

The Chinese government will contribute 60bn yuan (£6.5bn). 

The investments are expected to support domestic chip manufacturing and research projects, with one of the main focuses being machinery for chip fabrication, Reuters reported, citing unidentified people familiar with the matter.

The fund would follow those launched in 2014 and 2019, which raised 138.7bn yuan (£15bn) and 200bn yuan (£21.8bn) respectively, according to government sources. 

At the time, the backers for the funds were the Chinese finance ministry, as well as several state-owned entities such as China Development Bank Capital, China National Tobacco Corporation and China Telecom.

The investments made through the Big Fund have provided financing to China’s two biggest chip foundries...