One of the biggest tax cut packages of the last five years is being prepared by the Chinese government. The country will support the Chinese semiconductor industry by more than 1 trillion yuanDue to the measures taken by the US to slow the progress of the Asian giant.
The Chinese government’s package includes subsidies and tax credits that boost semiconductor chip manufacturing and research activities. The largest part goes to the purchase of equipment made by companies in the country. The plan should be implemented in the first quarter of 2023.
China’s idea is to achieve self-sufficiency and contain US restrictions. Thus, the country takes a more direct approach to the growing chip demand, Seen by the Beijing government as a cornerstone of its technological strength🇧🇷
The Chinese package may worry the US and its allies in the competition in the sector. North American legislators have already turned a deaf ear to the increased production capacity of equipment in China.
US President Joe Biden signed a bill that provides $52.7 billion in subsidies for semiconductor manufacturing and research in the country. There are also US$ 24 billion in tax credits for factories. The US, along with Japan and the Netherlands, is lobbying to restrict Chinese exports.
Source: Tec Mundo
