China Invests Billions to Close Critical Chokepoints

Beijing is pivoting the Big Fund III to to tackle lithography and EDA tools.

By Pablo Valerio, EETimes | July 7, 2025

China is strategically redirecting its immense state-backed investment to directly confront key technological “chokepoints” in its ambition for semiconductor self-sufficiency. With its new “Big Fund III.” After a decade of mixed results from its initial state-led semiconductor investment phases, China has initiated a fundamental strategic course correction with the third phase of the National Integrated Circuit Industry Investment Fund.

Known as “Big Fund III,” the new fund was launched in May 2024 with a registered capital of CNY 344 billion (approx. $47.5 billion), surpassing the combined size of its two predecessors. It reflects Beijing’s commitment to achieving semiconductor sovereignty amid rising geopolitical tensions. 

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