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STORY: China has a plan to beat the U.S. on chips.

Reuters sources say Beijing plans to spend $143 billion supporting its semiconductor industry.

Policymakers want the country to become self-sufficient in chips.

They also want to counter U.S. moves to slow China’s technological advances.

The sources say the plan could be implemented as early as the first quarter of next year.

Most of the money will reportedly be used to subsidize the purchase of new chip fabrication plants.

It is also said to include preferential tax policies for the industry.

There was no immediate comment on the report from officials.

But shares in Chinese tech firms jumped after the news.

Chipmaker SMIC closed up by almost 10%, while Hua Hong Semiconductor gained over 17%.

The subsidy plan comes as Washington steps up efforts to curb exports of chip-making equipment to China.

Officials have been lobbying Japan and the Netherlands to tighten their export controls.

The two countries are major producers of advanced chip-making gear.