China boosts investment in semiconductors to face US sanctions

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China boosts investment in semiconductors to face US sanctions
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China is expanding its investment in the semiconductor industry by offering new rounds of direct investment from the central government. The information was confirmed by the Financial Times.

According to the survey obtained by some sources, manufacturers such as SMIC, Hua Hong Semiconductor, Huawei, Naura and AMC are able to receive more money from Beijing.

In addition, these companies should also receive additional funding without having to meet R&D performance targets. The measure is seen as a solution to accelerate the development of chips and machines needed to manufacture them.

Image/reproduction: colectivoTC. Beijing’s new actions seek to offset recent US sanctions.

Despite the Chinese government not commenting on the matter officially, there are reports that the package developed by Beijing should offer a total financial contribution of 1 trillion yuan (something around US$ 146 billion).

This new package has not yet been released, but it should be a direct response from the Chinese government to the set of sanctions introduced by the United States in recent months.

If the financial aid is successful, China hopes the country will become self-sufficient in producing semiconductors and the machines that can be used to assemble them.

However, time is the biggest enemy of Beijing’s initiative, as it is focused on the long term, but US sanctions could end up affecting chip production in China within a few months.

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