Despite the crisis we are facing, there is an investment trend in the semiconductor industry as demand is rising. Let’s remember that chips are used not only by PCs, laptops and smartphones, as there are more and more devices that use them. In such a situation it should be kept in mind America are putting sanctions on china affecting increasingly harsh chips, Asian giant is preparing to deal with it aid package of more than 1 trillion yuan ,143,000 million dollars), taking another step towards chip self-sufficiency,
Just hours ago we reported how the semiconductor industry would invest billions of dollars in building new factories. Diversifying supply chains and increasing production efficiencies have become objectives pursued around the world. While it is true that there has been a decline in the sales of PCs, laptops and other devices, it is also true that there has been a decline in the sales COVID-19 has engulfed China, it has made most factories in the country closed due to security measures production delay equipment such as iphone 14 From apple Furthermore, there is another problem and that is the United States, which is increasingly more concerned about your safety and imposes sanctions and sanctions on China, affecting the chip industry.
China prepares $143 billion to counter the United States
Beijing is planning to implement one of the largest tax stimulus packages ever, which will include more than 1 trillion yuan to be distributed over 5 years. They will be composed mainly subsidies and tax credits It aims to promote chip production and research activities in the country. All of this arises as a reaction to the United States, which Increasing pressure on China And the future of chip production and shipments is at risk.
Given that their demand remains high, Beijing decided to be aggressive And according to sources, it will start from the first quarter of 2023, Most of the financial aid plan will go toward subsidizing the purchase of chip-making equipment. so Chinese companies would be entitled to a Subsidy of 20% of the cost of purchase,
China hopes to achieve greater self-sufficiency in chip making
This aid plan by China comes after the United States Department of Commerce approved a set of regulations affecting chips. Specifically, they plan to ban research labs and data centers Access to Advanced Artificial Intelligence Chips, Additionally, the US has put pressure on the Netherlands and Japan Strengthening Exports to China of equipment used in the manufacture of semiconductors.
Now that we know Beijing will allocate this massive amount of aid money, many of the country’s semiconductor companies have seen how the value of their shares increased, For example, minimum wage went over one 8%whereas Hua Hong Semiconductor A managed to upload 17%, it all points to china kill two birds with one stoneas it hopes to achieve greater self-sufficiency in its semiconductor industry while countering harsher US sanctions.
For example, the Biden-ruled country last October issued sanctions imposed on YMTC, SMIC and other Chinese manufacturers Couldn’t supply chips to companies and labs.