Refinitiv Newscasts - China preps $143 bln bid to beat U.S. on chips

Hua Hong Grace Semiconductor

13/12/2022 11:26

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_vdx80zb1&referenceId=tag:reuters.com,2022:newsml_RW634513122022RP1_930&pageId=RefinitivNewscasts
Source: Reuters

Description: 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. Julian Satterthwaite reports.
Short Link: https://refini.tv/3YbGZNk

Video Transcript:

China has a plan to beat the US on chips. Reuters sources say Beijing plans to
spend $143 billion supporting its semiconductor industry. Policymakers want
the country to become self-sufficient in chips. They also want to counter US
moves to slow China’s technological advances. The sources say the plan
could be implemented as early as the first quarter of next year. Most of the
money will reportedly be used to subsidize the purchase of new chip
fabrication plants. It is also said to include preferential tax policies for
the industry. There was no immediate comment on the report from officials. But
shares in Chinese tech firms jumped after the news. Chipmaker SMIC closed up
by almost 10%, while Hua Hong Semiconductor gained over 17%. The subsidy plan
comes as Washington steps up efforts to curb exports of chip-making equipment
to China. Officials have been lobbying Japan and the Netherlands to tighten
their export controls. The two countries are major producers of advanced
chip-making gear