The article discusses the surge in Chinese semiconductor stocks following Beijing’s announcement of a massive stimulus package aimed at boosting the country’s chip industry. Key points include: China unveiled a 1 trillion yuan ($143 billion) plan to support its semiconductor industry over the next five years, aiming to achieve self-sufficiency in chip production. The stimulus package includes tax credits, investment funds, and subsidies for companies involved in chip design, manufacturing, and packaging. Semiconductor Manufacturing International Corp (SMIC), China’s largest chipmaker, saw its shares surge 24% following the news. Other Chinese chip stocks like Hua Hong Semiconductor and Cambricon Technologies also rallied. The move is seen as a response to U.S. sanctions that have restricted China’s access to advanced chip technology. Beijing aims to reduce its reliance on foreign chips and become a global leader in semiconductor manufacturing. However, analysts warn that catching up with industry leaders like Taiwan and South Korea will be challenging and costly.