China challenged US in production of chips
2022.12.13 02:32
China challenged US in production of chips
Budrigannews.com – According to three sources, China is working on a support package for its semiconductor industry worth more than 143 billion dollars. This is a significant step toward chip self-sufficiency and a response to U.S. efforts to stymie its technological advancements.
According to the sources, Beijing intends to implement one of its largest fiscal incentive packages over the course of five years, primarily through tax credits and subsidies to boost domestic semiconductor production and research.
The plan has never been reported before, but sources say it could be put into action as soon as the first quarter of next year.
According to two of the sources, the majority of the financial assistance would be used to help Chinese companies, particularly semiconductor fabrication plants, or fabs, buy domestic semiconductor equipment.
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According to the three sources, such businesses would be eligible for a 20 percent discount on their purchase prices.
China has made it clear that creating its own chip industry is a top priority for its policy.
After President Joe Biden signed a landmark bill in August that provided $52.7 billion in grants for U.S. semiconductor production and research as well as a $24 billion tax credit for chip plants, the fiscal support plan follows.
According to the sources, Beijing intends to increase support for domestic facilities for fabrication, assembly, packaging, and research and development with the incentive package.
They claimed that preferential tax policies for the nation’s semiconductor industry are also included in Beijing’s most recent plan.
