China is preparing to introduce a state-backed investment fund of approximately $40 billion to support its semiconductor sector, signaling its commitment to closing the technology gap with the U.S. and other global competitors. This fund, part of the China Integrated Circuit Industry Investment Fund (Big Fund), surpasses previous funding initiatives in 2014 and 2019. The primary focus will be on chip manufacturing equipment, aligning with President Xi Jinping's goal of semiconductor self-sufficiency. This development comes in response to U.S. export control measures aimed at limiting China's access to advanced chip technology.