By Li Panpan

China is working on a more than RMB1 trillion ($143 billion) support package for its semiconductor industry, three sources said, in a major step towards self-sufficiency in chips and to counter US moves aimed at slowing its technological advances, reported Reuters on December 13.

Beijing plans to roll out what will be one of its biggest fiscal incentive packages over five years, mainly as subsidies and tax credits to bolster semiconductor production and research activities at home, said the sources in the Reuters report.

The plan could be implemented as soon as the first quarter of next year, said two of the sources who declined to be named as they were not authorized to speak to media.

Such companies would be entitled to a 20% subsidy on the cost of purchases, the three sources said.

A Reuters report on December 12 said that Japan and the Netherlands have agreed in principle to join the United States in tightening controls over the export of advanced chip-making machinery to China.