It is likely to be the biggest of three funds launched by the China Integrated Circuit Industry Investment Fund, also known, somewhat literally, as the Big Fund.

Its target of $41 billion outdoes similar funds in 2014 and 2019, which according to government reports, raised 138.7 billion yuan and 200 billion yuan respectively.

One main area of investment will be equipment for chip manufacturing, said one of the two people and a third person familiar with the matter.

President Xi Jinping has long stressed the need for China to achieve self-sufficiency in semiconductors.  This is not the only fund which has emerged from central government to push its chip production.