Caixin Explains: Washington’s Drive to Hobble Chinese Chipmaking

Promoting the semiconductor industry is a key priority for Beijing.

Microchips are among the seven “core technologies” the country aspires to master, according to a 2021 economic blueprint. The scandal-struck “Big Fund” set up to invest in the industry has sucked up more than 300 billion yuan since 2014.

But a massive U.S. semiconductor subsidy program that became law earlier this month will further complicate China’s efforts.