China has unveiled a slew of policies to help boost its domestic semiconductor industry as tensions with the U.S. continue to rise.
Analysts have cast doubt over whether the policies will have a major impact in helping China's chip industry.
A large part of the incentives from China's State Council focus on tax relief. For example, a manufacturer that has been in operation for more than 15 years and that makes so called 28 nanometer or more advanced chips, will be exempt from corporate income tax for up to 10 years.But it's not just the actual manufacturing side of the industry getting tax relief. Other players working in areas from chip design and software, areas where the U.S.
Under the so-called "Made in China 2025" industrial plan, the country aims to produce 40% of the semiconductors it uses by 2020 and 70% by 2025. It's unclear what that figure is at currently. But it's a key focus for the government and one that has been"I think this new cold technology war is exactly why China is scaling the technology curve and aggressively developing the mainland technology for threat of being cut off and cut adrift by aggressive U.S.
Stimulus for the chip industry in China is not new. In 2014, Beijing set up a multibillion dollar national fund to invest in chipmakers and last year created another one. But China still remains far behind the U.S. and other countries like Taiwan and South Korea.
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