China Readies $27 Billion Chip Fund to Counter Growing US Curbs

China is in the process of raising more than $27 billion for its largest chip fund to date, accelerating the development of cutting-edge technologies to counter a US campaign to thwart its rise.

The National Integrated Circuit Industry Investment Fund is amassing a pool of capital from local governments and state enterprises for its third vehicle that should exceed the 200 billion yuan of its second fund, according to people familiar with the matter.

Known as the Big Fund, the state-backed firm is expanding its remit just as the US prepares to sharply escalate technology curbs designed to curtail Chinese ...