China increases some chipmaker powers

China is giving a handful of its most successful chip companies easier access to subsidies and more control over state-backed research, as tightening US controls on access to advanced technology force a major rethink in Beijing’s approach to supporting the sector, reports the Financial Times.

The nurturing of closer co-operation with a select group of companies comes after the government shook up its tech strategy this month with the creation of a new Communist party science commission and a reinvigorated Ministry of Science and Technology.

Chipmakers Semiconductor Manufacturing International (SMIC), Hua Hong Semiconductor and Huawei, as well as equipment suppliers Naura and Advanced Micro-Fabrication Equipment Inc China, will be among those benefiting from the policy shift, according to people familiar with the matter.