The most ambitious funding round launched to date by China to support its semiconductor industry is struggling in the initial phases to raise its target of Rmb300bn ($41bn), with the difficult economic climate being blamed, according to three people familiar with the situation.

Beijing recently approved a third round for the China Integrated Circuit Industry Investment Fund, also known as the Big Fund, which has been instrumental in propelling the chip industry’s growth since it was established in 2014 and has served as a key tool in President Xi Jinping’s drive towards technological self-sufficiency.

The fund raised capital of Rmb139bn and Rmb200bn, respectively, in its first two phases and supported Chinese chip champions while investing in research and development.