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View all search resultsChina readying $143b package for chip firms
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C
hina is working on a support package of more than 1 trillion yuan (US$143 billion) for its semiconductor industry, three sources have said, in a major step towards self-sufficiency in chips and to counter the United States’ moves aimed at slowing its technological advances.
Beijing planned to roll out what would be one of its biggest fiscal incentive packages over five years, mainly as subsidies and tax credits to bolster semiconductor production and research activities at home, the sources told Reuters.
The plan could be implemented as soon as the first quarter of next year, said two of the sources, who declined to be named as they were not authorized to speak to the media.
The majority of the financial assistance would be used to subsidize the purchases of domestic semiconductor equipment by Chinese firms, mainly semiconductor fabrication plants, or fabs, they said.
Such companies would be entitled to a 20 percent subsidy on the cost of purchases, the three sources said.
The fiscal support plan comes after the US Commerce Department passed in October a sweeping set of regulations, which could bar research labs and commercial data centers’ access to advanced artificial intelligence (AI) chips, among other curbs.
And US President Joe Biden in August signed a landmark bill to provide $52.7 billion in grants for US semiconductor production and research, as well as tax credit for chip plants estimated to be worth $24 billion.
