Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply chains through 2030. In order to examine and analyze these policy revisions, Digitimes Research has published a Special Report that examines how the revised central government guidelines and various local government policy implementations will affect China's semiconductor manufacturing, IC design, packaging & testing and materials industry.
The new government guidelines, titled "National Integrated Circuit Industry Development Guidelines," continue to affirm the tax benefits mentioned in the State Council Document 4 (2011) for IC design houses and foundries, but the tax benefits have expanded to testing firms. This means testing firms will now also enjoy benefits on corporate income, value-added, and operation taxes.
The central government also plans to set up a national industry investment fund of CNY120 billion (US$19.3 billion). The fund will mainly focus on investing in the construction of advanced process capacity, semiconductor firm reorganization, and mergers.
Digitimes Research believes through the investment fund support, China will increase its capabilities for advanced processes on 12-inch wafers. In addition, there will be more China-based semiconductor firms merging and more acquisitions of international firms by China-based firms.
The Special Report is priced at NT$42,750 (approx. US$1,500). Purchase the report
Table of Contents
Introduction
Current status of China semiconductor industry
Chart 1: China semiconductor industry output, 2009-2014 (CNYb)
Chart 2: China semiconductor self-sufficiency rate, 2009-2015 (CNYb)
IC design industry in China
Chart 3: China IC design industry output, 2009-2014 (CNYb)
Chart 4: Taiwan and China IC design industry output, 2009-2014 (US$m)
Table 1: Top-10 China IC design companies by revenues, 2010-2013
Consolidation and partnerships since 2012
Chart 5: Consolidation and joint ventures have become the trend in China's semi industry
Central and local government support
Central government
Table 2: Government support in the second part of 12th Five-Year Plan
Chart 6: Central government support policies in the latter part of the 12th Five Year Plan
Local government
Chart 7: Local government support policies in the latter part of the 12th Five Year Plan
Central Government policy analysis
Description and guidelines for 02 Project of 2014
Chart 8: In 2014, the 02 Project shifted IC fab subsidies upstream to the materials industry
Ministry of Industry and Information Technology's four major goals
Chart 9: Four major policy goals of MIIT to support semiconductor industry
National Integrated Circuit Industry Development Guidelines
Policy goals
Chart 10: NICIDG guidelines have goals laid out for semi industry through 2030
Key development goals
Table 3: China semiconductor industry sub-sector goals as planned out in NICIDG
Primary growth and support policies
Table 4: NICIDG growth and support policies for the semiconductor industry
CNY120 billion investment fund to be established
Chart 11: Semiconductor industry growth and support fund details
Local government support
Beijing City Government
Chart 12: Beijing City Government policy-based support for the semiconductor industry
Shandong Provincial Government
Chart 13: Shandong Province policy-based support for the semiconductor industry
Wuhan City Government
Chart 14: Top-10 China cities for semiconductor output value, 2012-2013 (CNYb)
Chart 15: Wuhan City Government policy-based support for the semiconductor industry
Hefei City Government
Chart 16: Hefei City Government policy-based support for the semiconductor industry
Tianjin City Government
Chart 17: Tianjin City Government policy-based support for the semiconductor industry
Shenzhen City Government
Chart 18: Shenzhen City Government policy-based support for the semiconductor industry
Shanghai City Government
Chart 19: Shanghai City Government policy-based support for the semiconductor industry
Conclusion
Chart 20: Supportive policies from NSID Summary for China's semiconductor industry
Industry development in the 12th Five Year Plan
Chart 21: Using equity funds to purchase shares become a major support policy for China
Chart 22: Development goals in the latter part of the 12th and the 13th Five-Year Plan
About DIGITIMES Research
DIGITIMES Research is the research arm of DIGITIMES Inc., Taiwan's leading high-tech media outlet. Operating as an independent business unit, DIGITIMES Research focuses on monitoring key high-tech industries, while also guiding clients toward suitable new businesses. Digitimes provides market intelligence and analysis to more than 1000 corporate customers worldwide. Research and consulting services including a full range of products, from in-depth Special Reports on industry trends in the flat panel display (FPD), LED, and semiconductor industries, to Tracker services that monitor the global mobile device supply chain on a quarterly basis.
Media contact: Michael McManus (michael.mcmanus@digitimes.com)