Tech war: China’s Jiangsu province offers US$74 million a year to bolster vital semiconductor industry to counter US sanctions blow
- Jiangsu will offer subsidies and financial support to cover research, equipment purchase, chip design, packaging and production
- Local authorities have also promised cash grants to universities for semiconductor-related programmes
China’s eastern Jiangsu province has unveiled a policy package for the semiconductor industry, which includes at least 500 million yuan (US$74 million) a year in financial support over the next three years amid intensifying US trade sanctions.
While there is uncertainty over how Beijing plans to allocate funds to support domestic chip design and production, Jiangsu, a key chip production base, is promising a wide range of subsidies and cash awards to local chip businesses, according to the province’s development plan. The policy document was published on the province’s industry bureau website to solicit public feedback until January 16.
The subsidies and financial support will cover research, equipment purchase, chip design, packaging and production.
“[We should] vigorously develop advanced packaging … and chiplets,” according to the policy proposal. The document also highlighted the need to build domestic electronic design automation platforms and adopt self-developed testing equipment and intellectual property cores.
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China condemns new US law aimed at boosting domestic semiconductor manufacturing
Advanced packaging, a technology which aggregates and interconnects components before traditional integrated circuit (IC) packaging, has been viewed by some experts and industry insiders as one of the solutions that China can focus on to forge its own path in advanced chip production, as the US moves undermine the country's ability to access advanced chips. Chiplet is one of the most popular concepts of advanced packaging.
