China is launching a new $27 billion fund aimed at accelerating the development of its domestic semiconductor industry, known as the National Integrated Circuit Industry Investment Fund. This initiative seeks to amass capital from local governments and state enterprises, aiming to exceed the 200 billion yuan raised in its second fund. The move comes as the U.S. tightens sanctions against Chinese semiconductors, prompting both China and several U.S. venture capital firms to invest billions into the sector. The fund, often referred to as the 'Big Fund,' is part of China's strategy to compete with the U.S. in artificial intelligence and counter U.S. technological curbs.