Insurers to lend chip firms hand

Services will let semiconductor companies lower R&D expenses

Chinese insurance companies are designing tailor-made insurance services to promote the use of domestically developed chip products as part of the nation's broader push to boost the homegrown semiconductor sector, people familiar with the matter said.

Such insurance services, which have already been used to support homegrown auto chip companies last year, can help Chinese semiconductor enterprises lower research and development costs, and accelerate efforts to achieve breakthroughs in core technologies, they said.

The move can also help stabilize semiconductor industrial and supply chains as Washington continues to tighten export controls on chipmaking equipment and AI chips to China, they added.