State media said the investment was a clear sign of Beijing's push to end the country's reliance on foreign semiconductor firms

The development follows sanctions-hit Huawei's success in building an advanced 7-nanometer processor, in collaboration with state-backed SMIC

The company said it will continue to ship the products in its NXT:2000i and more advanced DUV models, which fell under the restrictions that started on Friday

If true, the development of a homegrown 5G chip would mark a win for China's local semiconductor sector, which has seen stock market gains of roughly 8% so far this week

The more than 300-page document mentioned "PRC" 130 times and "China" 222 times, as it outlined risks and uncertainties emanating from the ongoing chip war between Beijing and the West

Two sources said briefings were expected on Monday, with the announcement on Tuesday, while a former official said the US should be prepared for retaliation by Beijing

The island's foreign minister said his government would not block investment in Europe, but the continent needed to "consider a broader picture" and think on Taiwan's 'situation'

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