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China Plans Over $143 Billion Push to Boost Domestic Chips, Compete With U.S.

Reuters2022-12-13

HONG KONG, Dec 13 (Reuters) - China is working on a more than 1 trillion yuan ($143 billion) support package for its semiconductor industry, three sources said, in a major step towards self sufficiency in chips and to counter U.S. moves aimed at slowing its technological advances.

Beijing plans to roll out 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, said the sources.

The plan, which according to the sources could be implemented as soon as the first quarter of next year, has not been reported before.

The majority of the financial assistance would be used to subsidise the purchases of domestic semiconductor equipment by Chinese firms, mainly semiconductor fabrication plants, or fabs, said two of the sources.

Such companies would be entitled to a 20% subsidy on the cost of purchases, the three sources said.

China has a stated policy priority to develop an independent chip industry.

The fiscal support plan comes after U.S. President Joe Biden in August signed a landmark bill to provide $52.7 billion in grants for U.S. semiconductor production and research as well as tax credit for chip plants estimated to be worth $24 billion.

With the incentive package, Beijing aims to step up support for Chinese chips firms to build, expand or modernise domestic facilities for fabrication, assembly, packaging, and research and development, the sources said.

Beijing's latest plan also includes preferential tax policies for the country's semiconductor industry, they said.

The sources declined to be named as they were not authorised to speak to media.

The State Council Information Office did not immediately respond to a request for comment.

($1 = 6.9796 Chinese yuan renminbi)

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Comment16

  • PhilipGoh
    ·2022-12-14
    Okay 
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  • 来人
    ·2022-12-13
    Ok 
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  • BKT
    ·2022-12-13
    Pls like thanks.
    Reply
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  • Toby_Chua
    ·2022-12-13
    Self sufficiency way to go...
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  • Luckycube
    ·2022-12-13
    👍 
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  • Fiona888
    ·2022-12-13
    K
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  • LeonTse
    ·2022-12-13
    Decades ago, USA used to promote freedom. Telling China to let go of their talent to migrate to their country, it's the talents' free-will. Now it's their turn, they enforced a law that restricts talent from working in any China basedcompany. USA talks about freedom and free will is proven to be a big pile of BS.
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    • robbo
      [Tongue]
      2022-12-13
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    • jingsheng
      ok
      2022-12-13
      Reply
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    • leolow84
      like
      2022-12-13
      Reply
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    View more 2 comments
  • GoodLife99
    ·2022-12-13
    More good news for Chinese stocksss! 🙃
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    • Runningdown
      Yes
      2022-12-13
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    • crtyn
      Ok
      2022-12-13
      Reply
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  • BeBob
    ·2022-12-13
    Like
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    • BeBob
      1
      2022-12-13
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    • BeBob
      Ok
      2022-12-13
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  • Universe宇宙
    ·2022-12-13
    現在才發現,大哥是對的! [Cool] 
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  • Benzz
    ·2022-12-13
    Ok
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  • LuckyPiggie
    ·2022-12-13
    Good news [Chuckle]  ...  Stocks dont run so fast ... wait for me [Wow] 
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    • EV8Replying toLuckyPiggie
      Hahaha so fast
      2022-12-13
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    • LuckyPiggieReplying toEV8
      original post got deleted [Surprised]
      2022-12-13
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    • EV8Replying toLuckyPiggie
      Both r semiconductor
      2022-12-13
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    View more 2 comments
  • TripleWin
    ·2022-12-13
    [Like] 
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    • TripleWin
      [Like]
      2022-12-13
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  • kong1509
    ·2022-12-13
    👍
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  • AlphaSpiker
    ·2022-12-13
    Way to go yeah!
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  • 4West
    ·2022-12-13
    Nice 
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