China facilitates more research for chip firms

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China facilitates more research for chip firms

According to the Financial Times, China is facilitating easier access to subsidies and more control over state-backed research for a handful of chip companies, including Semiconductor Manufacturing International SMIC Hua Hong Semiconductor and Huawei, as well as equipment suppliers like Naura and Advanced Micro-Fabrication Equipment Inc. China may benefit from the policy, according to people familiar with the matter.

In December, China is working on a more than 1 trillion yuan US $145.34 billion support package for its semiconductor industry, despite tighter US restrictions aimed at slowing its technological advances.

The report said that the chosen firms would have access to additional government funding without having to meet previously necessary performance goals, as well as be allowed to play a bigger role in state-sponsored research projects.