For China, actions speak louder than words, especially in the escalating chip battle with the U.S., which has been hurling out verbal threats in recent months.

The Chinese chip infrastructure is getting a serious boost from Tsinghua Unigroup, which is investing US$30 billion in a new foundry to make chips. The state-owned Tsinghua Holdings is a majority shareholder in Tsinghua Unigroup.

This news comes just two weeks after U.S. accused China of rigging the chip market and artificially reducing the prices of semiconductors. The tough talk came from the administration of former President Barack Obama but will continue under Donald Trump, who was sworn in as president Friday.

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How does China respond to US chip threats? With a $30 billion factory