Chip support from local governments increases

China’s local governments are doubling down on cash incentives and policy support for home-grown semiconductor companies, as part of Beijing’s drive to achieve greater self-sufficiency in the chip sector amid heightened rivalry with the US, reports the South China Morning Post.

Local governments like Shenzhen are playing catch-up with traditional semiconductor hubs such as Shanghai by unveiling a range of new measures and fresh cash to support semiconductor firms, in a broad move to bolster the country’s efforts to lessen dependence on foreign technology.

Some of the ambitious plans have emerged in cities previously not on China’s semiconductor radar screen. Lishui, a prefecture-level city in eastern Zhejiang province, has joined the charge by rolling out several measures to support the local chip industry.