China is planning a sweeping set of new government policies to develop its domestic semiconductor industry and counter Trump administration restrictions, conferring the same kind of priority on the effort it accorded to building its atomic capability, according to people with knowledge of the matter. Beijing is preparing broad support for so-called third-generation semiconductors for the five years through 2025, said the people, asking not to be identified discussing government deliberations. A suite of measures to bolster research, education and financing for the industry has been 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.
“The Chinese leadership realizes that semiconductors underpin all advanced technologies, and that it can no longer dependably rely on American supplies,” said Dan Wang, technology analyst at research firm Gavekal Dragonomics. “In the face of stricter U.S. restrictions on chip access, China’s response can only be to keep pushing its own industry to develop.”
Shares in several major Chinese chipmakers gained. Shanghai Fudan Microelectronics Group Co. finished 4.3% higher in Hong Kong. On mainland bourses, Will Semiconductor Ltd. — the second most valuable listed Chinese chip firm — rose almost 10%. Xiamen Changelight Co. closed 14% up while Focus Lightings Tech Co. jumped 5.6%.
The Ministry of Industry and Information Technology, which is responsible for drafting the tech-related goals, did not reply to a request for comment.