China pauses chip industry investments as COVID resurges, Bloomberg reports

China is pausing its investments aimed at building a chip industry to compete with the U.S. as the country’s COVID resurgence strains it economy as well as Beijing’s finances, Bloomberg News reports. Officials in the country are discussing methods to move from costly subsidies and instead encourage both graft and American sanctions, people familiar with the matter tell Bloomberg. While some officials still push for incentives of as much as $145B, many policymakers no longer support an investment-led approach due to it not yielding the results anticipated, Bloomberg’s sources say. Policymakers are instead looking at ways to assist China’s chipmakers, such as by lowering the cost of semiconductor materials. Publicly traded companies in the space include Alibaba (BABA), AMD (AMD), Intel (INTC), Marvell (MRVL), Microchip (MCHP), Micron (MU), Nvidia (NVDA), Qualcomm (QCOM), Texas Instruments (TXN) and TSMC (TSM). Reference Link