During the 12th FYP period, only semiconductor companies established from 2011 are eligible for tax incentives. Moreover, only profitable firms working in areas consistent with government goals will be offered subsidies, with a quota of 40 firms also imposed. These requirements and assessments may encourage IC design startups, while also focusing R&D resources on product and technology sectors the government views as promising. The ultimate impact will probably be to weed out poorly performing firms and expedite the consolidation of the industry.
Central government policy goals and tax break policies for the semiconductor industry in China
Chart 1: Key policies to stimulate the China semiconductor industry during the 12th FYP
Policy goals and focal points for development during the 12th FYP
Focus of semiconductor industry development during the 12th FYP
Analysis of important new tax and subsidy policies for the 12th FYP
Comparison of semiconductor industry subsidy polices during the 11th FYP and 12th FYP periods
Table 1: Comparison of IC manufacturing tax incentives during the 11th FYP and 12th FYP periods
Table 2: Comparison of IC design tax incentives during the 11th FYP and 12th FYP periods
Support for the semiconductor industry from major state projects during the 12th FYP period
Chart 9: Major National Science & Technology Projects for IC design in China, 2009-2013
Local government and industrial park support for the semiconductor industry
Chart 10: Regions providing subsidies or support to IC design companies from 2013
Chart 11: IC design industry subsidy policies in Xiamen and Jinan
IC design subsidy policies in the Dalian High Tech Industrial Zone
Chart 12: IC design industry subsidy policies in the Dalian High Tech Industrial Zone
Chart 13: IC design industry subsidy policies in TEDA, Tianjin
Chart 14: IC design industry subsidy policies in SSL, Dongguan
IC design subsidy policies in the Shanghai Integrated Circuit Design Incubation Center
Semiconductor industry subsides from major projects in Shanghai
Chart 16: Shanghai's support for major semiconductor industry projects during the 12th FYP period
