New Delhi, Sept 6 (KNN) China is strategizing to compete with the U.S, India and others in the semiconductor sector by launching a new state-backed investment fund that aims to raise about USD 40 billion, reported The Indian Express.

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 (USD 41 billion) outdoes similar funds in 2014 and 2019, which according to government reports, raised 138.7 billion yuan and 200 billion yuan respectively.

Equipment for chip manufacturing will be one main area of investment, one of the two people and a third person familiar with the matter told The Indian Express.

President Xi Jinping has long stressed the need for China to achieve self-sufficiency in semiconductors. That need has become all the more pressing after Washington imposed a series of export control measures over the last couple of years, citing fears that Beijing could use advanced chips to boost its military capabilities.

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.

Back in July, Minister of State for IT & Electronics, Rajeev Chandrasekhar said that India will pip China in bagging multi-billion-dollar semiconductor investments.

“India is set to sign deals for up to 2 mega units by October-November that will manufacture the silicon fab, apart from compound fab units,” he said.  (KNN Bureau)