China Weighs Over $143B In Semiconductor Push To Beat US Embargo - Alibaba Gr Hldgs (NYSE:BABA)

China earmarked over 1 trillion yuan ($143 billion) in support package for its semiconductor industry, in a significant step towards self-sufficiency in chips and to counter the U.S. embargo.
Beijing weighed introducing one of its most significant fiscal incentive packages over five years, mainly as subsidies and tax credits to bolster domestic semiconductor production and research activities, Reuters reports.
China looks to implement the plan as soon as the first quarter of next year.
Also Read: China Taps Alibaba, Tencent To Beat US Sanctions
Most of the financial assistance would subsidize the purchases of domestic semiconductor equipment by Chinese firms, mainly semiconductor fabrication plants or fabs.
Such companies would be entitled to a 20% subsidy on the cost of purchases.
Beijing looks to accelerate support for Chinese chip firms to build, expand or modernize domestic facilities for fabrication, assembly, packaging, and research and development.
The latest plan includes preferential tax policies for the country's semiconductor industry.
In August, U.S. President Joe Biden inked a landmark bill to provide $52.7 billion in grants for U.S. semiconductor production and research and tax credit for chip plants.
Alibaba Group Holding Limited (NYSE: BABA) and start-up Biren Technology tweaked their most advanced chip designs to reduce processing speeds and bypass U.S.-imposed sanctions.
Photo by Tatiana Popova and rawf8 by Shuttterstock

To add Benzinga News as your preferred source on Google, click here.