TAIPEI (Taiwan News) — China’s expanded smartphone subsidy program may create new opportunities for Taiwanese manufacturers.

After initially offering subsidies for mid-to-low-end smartphones and tablets priced under NT$27,208 (6,000 Chinese yuan), Chinese authorities have widened the program to include high-end models. Nearly all smartphones on the market are eligible, benefiting key Taiwanese suppliers, per CTEE.

MediaTek has been singled out as one of the biggest winners. Analysts also expect Largan Precision, Win Semiconductors and Advanced Wireless Semiconductor, TXC, and TSMC to gain from the policy.

Previously, the program provided a 15% subsidy, capped at 500 yuan per device, for smartphones under 6,000 yuan. The new policy lifts that cap, instead offering a 10% subsidy for phones priced above 6,000 yuan.

The change is viewed as a key move to stimulate high-end consumption and drive technological upgrades. Market speculation suggests China’s total subsidy budget could reach NT$453 billion (100 billion yuan) this year, with the program potentially extending into the coming years.

The policy shift has already driven gains for Taiwanese tech stocks. TXC surpassed NT$100 with a rise of almost 3%, while MediaTek, widely recognized as the biggest beneficiary, gained over 2% Wednesday morning.

MediaTek dominates China’s smartphone chipset market, supplying major brands such as Xiaomi, Oppo, Vivo, and Honor. With government subsidies expected to boost consumer demand, analysts predict significant growth in the company’s China business.