China Tempts Chipmakers With Tax Cuts Amid Tensions With U.S.

China is tempting chipmakers with tax cuts amid trade-related tensions with the United States, with Beijing officially announcing its attempt to do so earlier this week. The new framework is set to go into effect on January 1, 2019, allowing semiconductor companies to be exempted from tax for up to five years and only pay half of the current 25-percent rate over the following half a decade. The government is hoping the move will attract more foreign and domestic investments from the semiconductor industry, with the relaxed tax rules being part of the Made in China 2025 initiative which is conceptually similar to the Made in India policy that New Delhi has been pursuing for several years n…
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