China mulls $70 billion domestic chip fabrication injection, would be largest of any government semiconductor investment — Huawei and Cambricon among candidates in push to compete with Nvidia, other U.S. firms

China is contemplating a substantial $70 billion investment in its domestic chip industry to enhance chip fabrication and compete with leading companies like Nvidia. This potential injection would surpass the US CHIPS Act in governmental semiconductor expenditure. The investment aims to reduce reliance on international chip supplies and address the global chip shortage. Chinese President Xi Jinping advocates for a national effort to strengthen chip manufacturing for strategic defense and economic independence. Despite advancements in Chinese chip technology, challenges remain in performance and efficiency compared to industry leaders like Nvidia and AMD.