Thursday, October 1, 2020

China plans reforms to protect chip industry from Trump threat

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Xi Jinping

China is planning a broad set of new government policies to develop its domestic semiconductor industry and counter the Trump administration’s restrictions, giving the same kind of priority to the effort it made to develop its atomic capacity, according to people with knowledge of the matter.

Beijing is preparing broad support for so-called third-generation semiconductors for the five years to 2025, said the people, who asked not to be named when discussing the government’s deliberations.

A set of measures to boost research, education and funding for industry was added to a draft of the country’s 14th five-year plan, which will be presented to the country’s top leaders in October, the people said.

China’s top leaders will meet next month to design their economic strategy for the next half decade, including efforts to increase domestic consumption and make critical technology at home. President Xi Jinping has pledged an estimated $ 1.4 trillion through 2025 for technologies ranging from wireless networks to artificial intelligence.

Semiconductors are central to virtually every component of China’s tech ambitions, and an increasingly aggressive Trump administration threatens to cut off its supply from abroad.

Tech Central

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