China is reportedly losing faith in its RMB1 trillion ($145bn) project to boost its chip industry through massive state funding, and instead considering more targeted investment through R&D or equipment subsidies, according to reports in Bloomberg. This would be a significant change of strategy after decades of direct state funding and tax credits for homegrown semiconductors operations, which has been greatly intensified over the past few years in a redoubled quest for technological self-sufficiency, in the face of US sanctions. Like most governments, China’s is battling under the financial weight imposed by Covid-19, as well as tax revenues depressed by a weakened economy. According to the reports, some senior officials are also questioning the effectiveness and return on investment of…