China Prepares as Much as $70 Billion in Chip Sector Incentives

Group 1 - China is considering a substantial package of incentives worth up to $70 billion to support its chipmaking industry, reflecting its strategic focus on technological independence amid US-China tensions [1][2] - The proposed incentives range from 200 billion yuan ($28 billion) to 500 billion yuan, with final details still being negotiated [2] - This initiative aims to bolster domestic companies like Huawei Technologies and Cambricon Technologies, reducing reliance on foreign chipmakers such as Nvidia [3][4] Group 2 - The scale of the proposed incentives is significant, potentially making it the largest state-backed semiconductor support program to date, as countries globally seek to secure local semiconductor production [4] - The Chinese government is adopting a "whole-nation" approach to enhance semiconductor capabilities, driven by concerns over access to US technology due to export restrictions [6] - The focus on semiconductors and AI has led to increased fortunes for firms across the supply chain, indicating a robust growth trajectory in the industry [7]