China to attract chip manufacturers with huge benefits

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The Chinese government is reportedly setting up an ‘international working Commission on semiconductors’, reports Nikkei Asia (paywall, via Heise). Companies such as ASML, Intel and AMD would be tempted by the reversal in policy with subsidies and a huge sales market to build factories in China. The commission should be formed in the first half of 2022.

So far, foreign companies are only allowed to sell such technology in China under strict conditions. The Chinese Communist Party has been trying to get its own semiconductor industry going for years, but that does not seem to be successful. Contrary to previous policies, foreign companies are now invited to settle in China, according to Nikkei. With around 18 percent of the world’s population living in the country, that means a huge new market for companies like ASML and Intel.

That does not mean that the West could also possibly counteract. Because of the trade war with China, the United States in particular wants to be self-sufficient and not send leading technology to Asia. The CHIPS for America plan only underscores this sentiment.

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