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technology1d ago
China mulls $70 billion domestic chip fabrication injection, would be largest of any government semiconductor investment — Huawei and Cambricon among candidates in push to compete with Nvidia, other U.S. firms
- China weighs an additional $70 billion for domestic chip fabrication to boost its semiconductor industry.
- The plan would augment existing programs like Big Fund III to accelerate chip design and production.
- Beijing seeks to compete with Nvidia and reduce reliance on U.S. chip supplies.
- Historical context shows China has pursued homegrown AI hardware while trying to balance foreign technology use.
- Experts indicate domestic progress remains challenged by heat, yield, and performance gaps with leading chipmakers.
- The investment is part of a broader push to strengthen China’s chip supply and reduce foreign reliance.
- China’s approach is guided by a 'whole-nation' effort to bolster domestic semiconductor manufacturing.
- The plan comes as China continues to navigate export controls and AI hardware approvals.
- If enacted, the investment would be among the largest government semiconductor expenditures globally.
- The report notes the exact recipients and methods of fund allocation are still under discussion.
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