China Cuts Taxes for Chipmakers to Promote Industry Development
A 12-inch wafer is displayed at the headquarters of Semiconductor Manufacturing International Corp. (SMIC) in Shanghai.
Photographer: Qilai Shen/Bloomberg
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China said it cut taxes for semiconductor makers, lending new support for the pivotal industry just as U.S. President Donald Trump weighs tariffs on the sector amid rising trade tensions.
The new rules cover a broad swath of semiconductor companies. They will be exempt from corporate income taxes for up to five years starting Jan. 1, the Finance Ministry said in a statement on Friday. Tax rates after that will then be half of the current 25 percent through the 10th year.