China weighs $28–$70 billion in new subsidies to expand domestic chip industry

On Friday, China was reported to be considering an incentive package valued between $28 billion and $70 billion to bolster its domestic semiconductor sector, with subsidies and financing options still under discussion. The proposed plan, which would run alongside the roughly $50 billion Big Fund III, aims to reduce dependence on foreign suppliers such as Nvidia while supporting firms like Huawei and Cambricon. Chinese policymakers have also signaled that they will maintain economic support in 2026 through flexible monetary tools and a "necessary" budget deficit, while working to stabilize investment and the housing market.