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Business / Policy Watch

China announces measures to boost IC industry

(Xinhua) Updated: 2014-06-25 10:29

BEIJING - The Chinese central authorities on Tuesday unveiled a program to promote the integrated circuit (IC) industry by setting up a state-level leading group and special investment fund.

The "National Guideline for the Development and Promotion of the IC Industry," published by the State Council, was meant to stimulate the dynamism and creativity of IC companies and accelerate the pace at which China's IC industry catches up with international leaders.

China announces measures to boost IC industry 
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The sector's development should be focused on design and manufacturing, and great efforts should be made to boost the IC packaging and testing industry and make breakthroughs in key equipment and materials, it said.

A state-level "leading group" consisting of high officials will be set up to enhance top-level design and mobilize resources to boost the sector, according to the guideline.

Secondly, a special national industry investment fund will be put in place to provide a platform for big companies, financial institutions and social capital to support the development of the IC industry.

Thirdly, financial support will be increased for the industry in the form of providing new credit products and financial services, encouraging IC companies to go public, issuing financing tools and developing insurance products for the sector.

More efforts will be made to implement preferential tax policies for the industry, increase the application of secure and reliable software and hardware, encourage firms to set up IC technological research institutions, and boost international cooperation.

The IC industry, as the core of the information technology (IT) sector, is a strategic, fundamental and pioneering one to support economic and social development and safeguard national security, said the guideline.

Speeding up the development of the IC industry is also of great strategic significance to transform China's economic development pattern, safeguard national security and boost national competitiveness, it added.

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