China Plans RMB 500 Billion Support Package for Domestic Chip Industry

Jazmine · 发表于 2025-12-13 12:13:47

Bloomberg reported, citing people familiar with the matter, that China is preparing a support package worth up to RMB 500 billion (SGD 91.673 billion) to provide funding and support for its domestic chip industry.
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Sources indicated that authorities are discussing a package of subsidies and other financing support measures, with the scale ranging from RMB 200 billion to RMB 500 billion (SGD 36.629 billion to SGD 91.573 billion). The final details of the incentive scheme, the specific amount of funding, as well as the targeted beneficiaries are still being finalized.

The report noted that the size of this plan is close to the funding earmarked under the U.S. CHIPS and Science Act, underscoring Beijing’s resolve to reduce its reliance on foreign chipmakers such as NVIDIA. This also means that even though the Trump administration has approved the sale of NVIDIA chips—including the high-performance H200—to China, the Chinese government will continue to back local enterprises like Huawei and Cambricon.

As pointed out in the report, if the total support fund reaches RMB 500 billion, the proposal will become the largest state-backed semiconductor incentive program in history.

Insiders stated that this Chinese initiative will be separate from the existing National Integrated Circuit Industry Investment Fund, also known as the "Big Fund". China’s Ministry of Industry and Information Technology, which oversees the Big Fund and assists in implementing relevant support measures, did not respond to a faxed request for comment.

The third phase of China’s Big Fund was established on May 24, 2024, with a capital injection of over RMB 344 billion—exceeding the combined fundraising scale of the fund’s first two phases (RMB 138.7 billion and RMB 204.2 billion respectively).

[硬件] China Plans RMB 500 Billion Support Package for Domestic Chip Industry

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