Technicians work in a workshop of Wuhan Xinxin Semiconductor Manufacturing Co., Ltd. (XMC) in Wuhan Donghu New Technological Development Zone in Wuhan, capital of central China's Hubei Province, Feb. 14, 2020. (Xinhua/Wang Yuguo)
BEIJING, Oct. 14 (Xinhua) -- China is adding more financial support for the high-quality development of the integrated circuit (IC) industry, reported Economic Information Daily Wednesday.
China's IC industry has currently shown a strong development momentum. From January to June this year, the industry had realized a sales revenue of 353.9 billion yuan, up 16.1 percent year on year.
However, insufficient investment in technological innovation and related research and development is still the main bottleneck restricting the development of the industry.
Multiple regions in China have recently clarified financial support plans for the IC industry, aiming at investing tens of millions yuan to hundreds of millions yuan to support IC firms in core technology research and development (R&D) and talent introduction among others.
South China's Guangdong Province proposed to invest no less than one billion yuan of the provincial sic-tech innovation strategy special fund every year to support technological innovation of the IC industry.
Chengdu, capital city of southwest China's Sichuan Province, recently rolled out ten measures to support the high-quality development of the IC industry, including giving up to 20 million yuan of discounts to projects with an actual investment of more than 500 million yuan, and rewarding core teams of enterprises realizing an annual revenue of 100 million yuan for the first time with 2 million yuan.
The Zhuhai National High-tech Industrial Development Zone in Zhuhai City of Guangdong Province proposed to provide key support to local leading IC enterprises in talent recruitment, financing, R&D subsidies, etc.
East China's Shanghai Municipality recently issued a three-year action plan for the construction of the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, specifying that enterprises in key fields like IC and artificial intelligence shall be levied corporate income tax at a 15 percent tax rate within five years from the date of establishment.
Support from the financial industry will also be enhanced. The Shanghai Head Office of the People's Bank of China recently proposed to encourage financial institutions to increase credit support for IC, bio-medicine, artificial intelligence and other key fields.
China's sci-tech innovation board (STAR market) has also opened a convenient channel of direct financing for relevant enterprises. By October 13, there were 183 companies listed on the sci-tech innovation board, 48 of which have businesses related to semiconductor and semiconductor production equipment.
Long-term stable R&D investment is the key to the development of the IC industry, and more financial support should be provided to basic innovation research, as well as the manufacturing, design and testing of chips, noted Pan Helin, executive dean of the Institute of Digital Economy with the Zhongnan University of Economics and Law (ZUEL). (Edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)
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