- China earmarked over 1 trillion yuan ($143 billion) in support package for its semiconductor industry, in a significant step towards self-sufficiency in chips and to counter the U.S. embargo.
- Beijing weighed introducing one of its most significant fiscal incentive packages over five years, mainly as subsidies and tax credits to bolster domestic semiconductor production and research activities, Reuters reports.
- China looks to implement the plan as soon as the first quarter of next year.
- Also Read: China Taps Alibaba, Tencent To Beat US Sanctions
- Most of the financial assistance would subsidize the purchases of domestic semiconductor equipment by Chinese firms, mainly semiconductor fabrication plants or fabs.
- Such companies would be entitled to a 20% subsidy on the cost of purchases.
- Beijing looks to accelerate support for Chinese chip firms to build, expand or modernize domestic facilities for fabrication, assembly, packaging, and research and development.
- The latest plan includes preferential tax policies for the country’s semiconductor industry.
- In August, U.S. President Joe Biden inked a landmark bill to provide $52.7 billion in grants for U.S. semiconductor production and research and tax credit for chip plants.
- Alibaba Group Holding Limited (NYSE: BABA) and start-up Biren Technology tweaked their most advanced chip designs to reduce processing speeds and bypass U.S.-imposed sanctions.
- Photo by Tatiana Popova and rawf8 by Shuttterstock
Why Is Specialty Retailer Designer Brands’ Stock Plunging Today?
Designer Brands shares fell after disappointing Q1 FY24 earnings. Despite a 0.6% sales growth to $746.596 million, EPS of $0.080 missed estimates. Comparable sales dropped 2.5%, and the Operating income plunged 52.2% to $9.4 million.
