US made China to produce silicon chips at home

The Chinese government is working on plans for a substantial strengthening of the domestic chip industry. That’s what sources in Beijing reported to Bloomberg press office. The step should help to counter the restrictions imposed by American President Donald Trump on China’s chip sector.

It would be a broad package of measures, for example in the areas of research, education and funding for the chip companies. These were to be implemented in the coming years as part of a new five-year plan of the Chinese government to be presented to the country’s top leaders in October. According to the sources, Beijing gives huge priority to a stronger domestic chip industry, with a particular focus on the latest generation of semiconductors.

Trump has imposed rules that make it much more difficult for Chinese technology companies to access chips and other semiconductor components of American manufacture. As a result, it is becoming increasingly important for China to reduce dependence on foreign chip technology. Each year, the country imports more than 300 billion dollars of chip products from foreign suppliers.

Chinese president Xi Jinping has already announced that USD 1.4 trillion will be invested in wireless network technology and artificial intelligence in the period up to 2025, which means that chips are very important.