US-China tech war: Shanghai to woo semiconductor talent and support local chip development with shower of cash
- Government will subsidise up to 30 per cent of investment in semiconductor materials and equipment projects in the city
- The city’s 14th Five Year Plan lists semiconductor and artificial intelligence as two pillars underpinning future technology development

The Shanghai municipal government is rolling out a slew of generous incentives to attract talent and firms along the semiconductor supply chain, as part of China’s drive to fast track domestic chip industry development.
According to a government policy document published on Wednesday, the Shanghai government will subsidise up to 30 per cent of investment – up to a total of 100 million yuan (US$15 million) – in semiconductor materials and equipment projects in the city.
The same 30 per cent subsidy policy also applies to tape-out – where semiconductors are tested for flaws before they are sent for mass manufacturing – for chips with nodes less than 28-nanometres.
Analysts said the move signalled Shanghai’s resolve to help China overcome US sanctions targeting the country’s chip industry and would help cement the city’s position in the industry.