Hong Kong Xinfeng ELECTRONICS Co., LTD

Integrated circuit (chip) industry is one of the pain points of China's development, and now the largest material imported by China every year is not oil, natural gas, nor food, but chips. The annual import volume is more than 200 billion US dollars, equivalent to more than 1 trillion yuan. The lack of its own "China core" is also a major hidden danger to national security.

According to the "Integrated circuit industry market demand forecast and investment strategic planning analysis report" released by the prospective industry Research Institute, data show that before 2008, China's integrated circuit equipment basically relied on imports in 2009, China's integrated circuit equipment market size was only 969 million US dollars, the import scale and self-made scale were 900 million US dollars and 69 million US dollars, respectively. The proportion of self-made equipment is 7%(CISA data, the same as below in this paragraph). Since 2010, China has accelerated the speed of equipment imports, in 2016, the scale of equipment imports reached 3.6 billion US dollars, four times that of 2009, the rate of equipment self-production dropped to 3%, and import dependence is serious.
2009-2018 China's integrated circuit equipment market size, growth rate and self-made proportion
In order to improve the situation since the import of integrated circuit equipment, the state has set up a major science and technology project - very large scale integrated circuit manufacturing equipment and complete sets of process technology project (referred to as 02 special). Since 2011, the serious problem of China's import dependence on integrated circuits has gradually improved, and 15 kinds of 12-inch main equipment have passed large-scale production verification. It reached 12% for the first time in 2012 and gradually increased to 16% in 2015. Benefiting from the 02 special and other domestic IC development funds, the domestic IC equipment market surged 283% in 2010, reaching 3.707 billion yuan.
In 2011 and 2012, affected by the overall economic development, there was a decline in growth after 2013, and the compound growth rate between 2013 and 2017 was as high as 22.11%, and the increase was mainly from film manufacturing equipment, ion implantation equipment and packaging equipment.
Integrated circuit chips related to information security, economic security, and even national defense security, is the top priority of the national development strategy, the core technology in this area can not be subject to people, so from the national strategic level to focus on support for development. The Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the Ministry of Industry and Information Technology recently jointly issued the "Notice on the issue of Enterprise Income Tax Policy for integrated circuit Manufacturers", which stipulates the preferential tax policies that integrated circuit manufacturers or projects can enjoy, and encourages enterprises to continue to strengthen research and development activities and continuously improve research and development capabilities. The notice will take effect from January 1, 2018. The support of tax policy helps to improve the localization rate of domestic integrated circuits.
The notice also proposed that after January 1, 2018, the investment of new integrated circuit routes less than 65 nanometers wide or investment of more than 15 billion yuan, and the operation period of more than 15 years of integrated circuit production enterprises or projects, the first year to the fifth year of exemption from corporate income tax, the sixth year to the tenth year in accordance with the statutory tax rate of 25% of the enterprise income tax, and enjoy until the expiration of the period.
The notice pointed out that the integrated circuit production enterprises established before December 31, 2017, but have not made profits, the width of the integrated circuit route is less than 0.25 micron or the investment exceeds 8 billion yuan, and the operation period is more than 15 years, from the first year to the fifth year of profit, and the sixth year to the tenth year, according to the statutory tax rate of 25%, the enterprise income tax shall be halved. And enjoy it until its expiration.
Integrated circuit manufacturers established before December 31, 2017, but not profitable integrated circuit route width of less than 0.8 microns (inclusive), from the first year to the second year of profit, from the third year to the fifth year in accordance with the statutory tax rate of 25% of the enterprise income tax, and enjoy until the expiration.