Chips Drive China Plan for Up to $70 Billion in Incentives

China is preparing a major support package for the chips industry, underscoring its determination to strengthen technological self-reliance amid intensifying competition with the United States.

People familiar with the discussions said officials are weighing subsidies and financing support ranging from 200 billion to 500 billion yuan, aimed at bolstering domestic chips producers and accelerating capacity expansion.

The move highlights how critical chips are to China’s long-term industrial strategy, as policymakers seek to secure supply chains and reduce dependence on foreign technology.

While the final size and structure of the incentives are still under review, the proposed package would represent one of the largest state-backed efforts to support the semiconductor sector.