China is deliberating a package of incentives and subsidies valued at Yuan 200B-500B ($28B-$70B) aimed at its chipmaking industry, Bloomberg reported, citing people familiar with the matter.
This would mark the country’s latest push to build up its domestic chipmaking capabilities, relying less on foreign chipmakers and policy volatilities around them.
The report comes in the same week that U.S. President Donald Trump approved the sale of Nvidia (NVDA) chips, including the H200 processor, into China – with a 20% fee attached to sales.
The top end of the estimate would mark China’s largest package to spur the semiconductor industry so far. It would also be different from current state funding plans, the sources told Bloomberg.
The beneficiaries of this package would include domestic chipmakers SMIC (SIUIF), Huawei HiSilicon, Yangtze Memory Technologies, ChangXin Memory Technologies, Hua Hong Semiconductor, Cambricon Technologies, Moore Threads Technology, and other semiconductor players.