An employee showcases a semiconductor integrated circuit at an industry expo on October 31. Photo: VCG

 
The State Council has issued a new document outlining new policies to support the development of the integrated circuit industry. New policies and measures will be put forward in eight areas, including taxation, investment, research and development, and imports and exports.

According to a report by investment bank China International Capital Corporation Limited (CICC), the new policies will accelerate the localization of semiconductor manufacturing in China. 

A 10-year income tax exemption policy will be introduced for the first time to support the development of advanced technology enterprises that produce semiconductors of 28nm and below. 

“Increasing support for key design and software companies is expected to help China eliminate its shortcomings in the manufacturing of key chips and EDA software,” CICC said. 

The import tariff exemption policy for raw materials and other products, and the conditions for equipment tax exemptions have been clarified. In addition, an integrated circuit university degree has been listed as a first-level discipline, meaning there will be a more preferential tax policy for the related talent training industry. 

In the first half of this year, China gained more than 28,000 integrated circuit-related companies, of which nearly 19,000 were established in the second quarter, an increase of over 94 percent from the previous quarter.

Global Times