China plans to adopt a financial aid package of more than 1 trillion yuan (about $143 billion) for semiconductor manufacturers against US sanctions. Agency reports Reuters citing three sources familiar with the situation.
It is noted that the allocation of billions of dollars is an important step towards self-sufficiency in chips. Sources said Beijing will take these measures mainly in the form of subsidies and tax breaks for individual companies and factories.
Two sources indicated that the plan could be implemented as early as the first quarter of 2023. They said most of the financial aid will be used by local firms to subsidize Chinese equipment purchases. Under the new measures, companies will then be eligible for a 20 percent subsidy on purchases.
Former founder of Taiwanese company TSMC Morris Chang predicted a quick sunset The era of globalization and free trade is in a wave of conflict between the USA and China over technology.