Integrated circuit Illustration: VCG

Shanghai has announced expanded policy support for the integrated circuit industry to encourage the high quality development of the sector, according to a government document released on Wednesday.

According to the policy document, Shanghai is set to further increase fund support for major integrated circuit and software projects that have achieved major breakthroughs in independent research of spare parts and raw materials that have been put on the market. The proportion of support will be equal to 30 percent of the new investment of the project, which in principal will be capped at 100 million yuan ($15.74 million).

The city has also announced the lifting of restrictions for new investment in major projects across EDA, basic software, industrial software and information security software to no less than 50 million yuan while also granting 30 percent of fund support to the new investment, which in principal will also be capped at 100 million yuan .

The municipal government will also provide 30 percent funding support for enterprises engaged in tape out services which is conducive to promoting the application of 28 nm chips in Shanghai.

The municipal government also announced the expansion of the integrated circuit industry fund through marketization and the continuation of preferential interest rates for qualified enterprise merger and acquisition loans, bond financing, and bonds issued for the integrated circuit industry.