China has initiated its third state-backed investment fund aimed at bolstering its semiconductor industry, with a registered capital of 344 billion yuan ($47.5 billion), as per filings with a government-run companies registry.

The substantial investment underscores President Xi Jinping's push for semiconductor self-sufficiency in China, a goal that has gained heightened importance amid export control measures imposed by the U.S. in recent years, citing national security concerns.

The establishment of the third phase of the China Integrated Circuit Industry Investment Fund, known as the "Big Fund," was officially confirmed on May 24 and registered under the Beijing Municipal Administration for Market Regulation.

This latest fund, the largest among the three launched by the China Integrated Circuit Industry Investment Fund, aims to further advance China's semiconductor capabilities and reduce reliance on foreign technology.

Notable shareholders in the fund include China's finance ministry, holding a 17% stake with a paid-in capital of 60 billion yuan, and China Development Bank Capital, with a 10.5% stake.

The announcement spurred positive market sentiment, with Chinese chip shares surging, as evidenced by the CES CN Semiconductor Index rallying more than 3%, marking the largest one-day gain in over a month.