BEIJING, China: To keep pace with the U.S. and other rivals, China will establish a new state-backed investment fund for the semiconductor sector to raise some US$41 billion.

The new fund will be launched by the China Integrated Circuit Industry Investment Fund, also known as the Big Fund.

It is likely to be the biggest of three funds managed by the Big Fund, as its target of 300 billion yuan ($41 billion) outdoes similar funds in 2014 and 2019, which raised 138.7 billion yuan and 200 billion yuan, respectively.

The new fund will invest in various areas crucial to chip manufacturing, most notably equipment.

President Xi Jinping has highlighted the need for China to achieve self-sufficiency in semiconductors, especially after Washington imposed a series of export control measures over the past two years.

In October, the U.S. implemented a package of sanctions that removed China’s access to advanced chipmaking equipment, and Washington’s allies Japan and the Netherlands have taken similar measures.

Chinese authorities approved the new fund recently, and China’s finance ministry plans to contribute 60 billion yuan.

The State Council Information Office, which handles media queries on behalf of the government, the finance ministry, and the Ministry of Industry and Information Technology, has yet to respond to requests for comment about the fund.