＊Beijing is moving away from lavish spending on chip projects
＊Future investment could focus on EVs and new chip techniques
For years, China was the world’s biggest spender on chip incentives, a scale unmatched from Washington to Tokyo. Now, the effort to combat Covid and deal with the threat of a global recession is depleting state coffers and forcing Beijing to rethink that controversial approach.
Surging Covid cases are hobbling the world’s No. 2 economy and forcing its government to pause mammoth spending on its domestic chip industry. In a market dominated by the US and its allies, costly subsidies have so far borne little fruit and led to several high-profile corruption investigations. Policymakers are now searching for other ways to help homegrown chip firms.
source bloomberg