The investment, in a chip packaging facility in the Chinese city of Xian, will include buying packaging equipment from a Xian-based subsidiary of Taiwan's Powertech Technology

South Korean president Yoon Suk Yeol vowed to support the South Korean chip sector in the face of heightened tensions between China and the United States

Stocks of China's semiconductor companies have seen large gains since March with NAURA Technology Group up 14%, Piotech up 45% and ACM Research Shanghai up 19%

"It takes huge amounts of pre-emptive investment to be a chipmaker, and it takes five years, 10 years to break even on those investments, so putting predictability into jeopardy makes investments difficult," an analyst said

A $2.6 billion share sale, if approved by China’s securities watchdog, would follow a capital raising rush by Chinese chipmakers in the face of US sanctions

IT Minister Ashwini Vaishnaw said there’s an ‘ecosystem shift’ to the country as he revealed plans to develop India’s chip sector

The development follows the Dutch government’s announcement that it would restrict exports of critical chipmaking technology to protect national security

For Chinese customers, the restrictions would mean “that their ability to pursue leading-edge nodes development will be significantly curtailed," Citi analyst Amit Harchandani said

The Netherlands considers it necessary on national security grounds to get this technology into oversight with the greatest of speed, the Dutch trade minister said

The move signifies Beijing's changing priorities as it looks to strengthen is capabilities while Washington cuts off access to cutting edge technology

"To have dispatched an advanced fighter jet to shoot down a balloon with a missile, such behaviour is unbelievable," China's top diplomat said at a global security conference

Last month, on the heels of an export ban by the US and amid ongoing lay-offs in tech industries across the world, YMTC announced it would dismiss 10% of its staff