China slashes import tax to boost semiconductor sector

China announced new import cuts this week to boost the nation’s semiconductor industry. This follows after US sanctions on some Chinese companies including tech giant Huawei and chipmaker SMIC to ease the impact on the industry.

According to China’s finance ministry, chipmakers producing high-end 65-nanometer technology or smaller chips can import raw materials and machinery tax-free through 2030.

Totaling more than $300 billion annually, China’s processor chips and other semiconductors form the country’s largest single import. Despite the country’s strong chip industry, China still relies on Taiwan, the US and Europe for certain parts. In China’s fourth session of the 13th National People’s Congress (NPC) held in early March, the party pledged to build up self-reliance in science and technology.