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Cornered by US maneuvers on technology exports, the China would be ready to put a support package to the industry of semiconductors local from 143 billion dollars. the figure, nearly three times higher than the US CHIPS and Science Act ($52 billion), was unveiled by Reutersbecame aware of the details of Beijing’s plan.
It will be one of the largest tax stimulus packages ever launched by China, an amount to come allocated over five years mainly in the form of subsidies and tax credits to strengthen semiconductor manufacturing and research activities at home.
The plan should start be implemented from the first quarter of next year, according to the confessions of two sources. Most of the appropriation would be used for support the implementation of new production plants through the purchase of domestically developed chip-making machinery. Companies would be entitled to a subsidy of 20% on the purchase pricesay the three sources.
The beneficiaries of the sum will be both state-owned and private sector enterprisesespecially companies that develop machinery and technologies to produce semiconductors such as NAURA Technology Group, Advanced Micro-Fabrication Equipment Inc China and Kingsemi.
Reach technological self-sufficiency it is one of President Xi Jinping’s main goals, as indicated during the October Communist Party Congress. The term “technology” was used 40 times in his speech, up from 17 times at the 2017 convention.
US sanctions decided in October prevent many hi-tech companies in the USA and beyond from supplying Chinese companies such as YMTC and SMIC with fundamental machinery and technologies for the advanced production of chips. The US cites the national security as a motivation for these actions, playing on the often opaque relations of Chinese companies with Beijing’s military apparatus, but in reality there is also the will to curb the technological run-up of the Asian superpowerpreventing it from obtaining the technologies necessary for production with advanced production processes, i.e. below 16/14 nm.
In addition, restrictions have been put on the export of AI processors and accelerators with certain characteristics or a certain power. In the past few hours there has been a rumor that, precisely because of the rules applied by the USA and UK, ARM has desisted from licensing its latest architectures to Alibaba. For precisely these reasons, China has initiated a trade dispute at the World Trade Organization against the United States.
Meanwhile, China also appears to have applied trade restrictions. As reported by the Russian newspaper KommersantBeijing would Prohibited the export of Loongson processors based on the LoongArch architecture to the Russian Federation. The decision was allegedly motivated by the strategic importance of the technology and its use in the military-industrial complex. The export ban would be general, but at the moment it would be affecting Russia in particular.
Targeted by Western sanctions, Russia had pinned its hopes on Chinese solutions to compensate, at least in part, for the loss of processors from AMD and Intel. Since the outbreak of the Russo-Ukrainian war, star-spangled CPUs are no longer marketed in Russia, except through parallel imports.
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