The United States and China tech war looks to be heating up. This time, the Chinese nation is looking to boost its chip industry by expanding the support of its local governments. The move comes amid the export restrictions of the United States.
China Boosts Chip Industry Support
As per the latest news story by the South China Morning Post, the local governments of China are now expanding their support to chip manufacturing firms in the localities. The boost of support comes in the form of lucrative cash incentives, as well as friendly policy changes.
The Hong Kong-based media outlet says that the latest move of the Chinese nation seeks to improve the self-sufficiency of its chip manufacturing industry. The end goal is to lessen the reliance of these chip-making firms on exports.
Now that China is looking to boost its chip-making sector, new cities are emerging to be part of the manufacturing ambitions. Not to mention that other localities are ramping up their efforts that would attract more chip manufacturing firms.
For instance, a prefecture-level city in China, Lishui, is not known to be part of the chip manufacturing scene in the country. However, amid the ongoing tech war, the Zhejiang province city is now looking to dip its toes in the chip-making rodeo.
The South China Morning Post reports that the city of Lishui introduced new measures to support the chip industry. It should further attract more semiconductor firms in its locality.
And one of the new measures offers staggering cash incentives for tech firms. The WeChat post of the Lishui local government is giving away up to a whopping 5 million yuan or roughly $700,000 for chip design businesses earning up to 500 million yuan.
On the other hand, chip manufacturers are getting heftier incentives to the tune of 50 million yuan or nearly $7,000,000.
Meanwhile, the Chinese tech hub, Shenzhen, vowed to give chip makers up to 10 million yuan annually to support them in their research.
US Export Restrictions Amid Tech War
According to a recent report by Nikkei Asia, the United States Commerce Department introduced new export rules last October 7. It now requires advanced approval for the equipment that is being used to produce semiconductors that are set to be exported to the Chinese nation.
Related Article : US-China Tech War: ASML, Lam Research Pulls American Engineers From China Amid New Chip Restrictions
This article is owned by Tech Times
Written by Teejay Boris
