According to a filing with a government-run companies registry. The substantial investment underscores President Xi Jinping's commitment to achieving semiconductor self-sufficiency for China.

Ironically the lashings of cash are being spent because the last two US governments have bought in export controls against China  citing concerns that Beijing could utilise advanced chips to enhance its military capabilities.

Chinese chip shares surged, with the CES CN Semiconductor Index rallying more than 3 per cent and poised to log the largest one-day gain in over a month.

The third phase of the China Integrated Circuit Industry Investment Fund, known somewhat literally as the "Big Fund," was officially established on May 24 and registered with the Beijing Municipal Administration for Market Regulation, as per the National Enterprise Credit Information Publicity System, a government-run credit information agency.

The third phase will be the largest of the three funds launched by the China Integrated Circuit Industry Investment Fund. China's finance ministry is the largest shareholder with a 17 per cent stake and paid-in capital of 60 billion yuan, as reported by Tianyancha, a Chinese companies information database. China Development Bank Capital is the second-largest shareholder with a 10.5 per cent stake.

Reuters reported in September that China would launch the third phase of the Big Fund. The first phase was established in 2014 with a registered capital of 138.7 billion yuan, followed by the second phase in 2019 with 204 billion yuan.

The Big Fund has financed China's two largest chip foundries, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, Yangtze Memory Technologies, a flash memory maker, and several smaller companies and funds.

One of the primary focuses of the fund's third phase will be on chip manufacturing equipment. The Big Fund is also considering hiring at least two institutions to invest the capital from the third phase.