China is intensifying its efforts to lead in advanced technologies by establishing its largest semiconductor state investment fund, valued at $47.5 billion.

This move comes in response to the US imposing strict export restrictions on American chips and related technology to curb Beijing’s technological ambitions.

The new fund, supported by six major state-owned banks including ICBC and China Construction Bank, highlights President Xi Jinping’s commitment to advancing China’s tech industry.

This initiative aligns with the Made in China 2025 strategy, aiming for global leadership in sectors such as AI, 5G, and quantum computing, CNN reported.

This investment marks the third phase of the China Integrated Circuit Industry Investment Fund, known as the “Big Fund.”

The first phase, launched in 2014, was valued at $19.2 billion, followed by a second phase in 2019 with $28.2 billion.

The third phase was officially established in Beijing on Friday, according to the National Enterprise Credit Information Publicity System.

Written by B.C. Begley