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Digitimes Research launches Special Report to examine recent revisions made by China government targeting domestic semiconductor industry goals

Press release [Thursday 17 July 2014]

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)


The DIGITIMES editorial staff was not involved in the creation or production of any sponsored content or press release provided in the commercial news wire service. Companies looking to contribute commercial news or press releases are welcome to contact us.

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