China plans $143 billion in aid to semiconductor industry due to new U.S. laws.
$143 billion for the semiconductor industry; Image: DigiTimes.
After the U.S. passed a law in October that heavily regulates the export of semiconductors to China, the Chinese government is now planning to remedy the semiconductor industry.
The reason of the U.S. law is that China is not allowed to proceed further with the help of the USA. Thus, U.S. President Joe Biden signed a law in October that allows China to ensure no further advance.
China is now responding with a $143 billion (1 trillion Chinese yuan) financial rescue package. This is to cover 20% of all purchase costs in the industry and also to drive local production of semiconductors. Tax breaks for the related companies are also expected to be forthcoming.
