Reduction of Corporate Income Tax

Income tax is a major component of corporate taxation, and this reduction directly alleviates the burden on related enterprises.

For integrated circuit production enterprises that are encouraged by the state, with a line width of less than 28 nanometers (inclusive) and an operating period of more than 15 years, corporate income tax will be exempted from the first to the tenth year.

Exemption from Import Tariffs

Import tariffs are exempted for self-used production raw materials, consumables, cleanroom-specific building materials, supporting systems, and spare parts for integrated circuit production equipment.

Currently, China's semiconductor industry has a large volume of imports. Data shows that in 2018, China purchased two-thirds (312 billion USD) of the global chips, and the exemption from import tariffs directly benefits related enterprises.

Strong Support for Domestic and Overseas Listings

To put it bluntly, the integrated circuit and software industries are capital-intensive and require substantial financing.

In terms of investment and financing policies, the document points out that existing government investment funds at both national and local levels will be fully utilized to support the development of the integrated circuit and software industries. It encourages social capital to raise funds through multiple channels according to market principles, establish investment funds, and enhance the marketization level of these funds.
 

Exploring a New National System for Tackling Core Technologies

The "new national system" is a rare slogan in the current context, which sufficiently demonstrates the determination of our top leadership towards these industries.

The document points out that it will focus on the research and development of key core technologies in high-end chips, integrated circuit equipment and process technology, key materials for integrated circuits, integrated circuit design tools, basic software, industrial software, and application software. It will continuously explore the construction of a new national system for tackling key core technologies under the conditions of a socialist market economy.

Establishing Integrated Circuit as a First-Level Discipline

These cutting-edge technology fields require talent, which is the foundation for the development of these industries.

The document requires further strengthening the construction of integrated circuit and software majors in universities, accelerating the establishment of integrated circuit as a first-level discipline, and closely aligning with industrial development needs to timely adjust curriculum, teaching plans, and teaching methods, striving to cultivate high-level, practical, and versatile talents.

It can be said that these policies support the development of the integrated circuit industry from various dimensions such as cost, expenses, financing, technology, and talent. Combined with the current market's long-term enthusiasm for tech stocks, related concept stocks in integrated circuits (semiconductors, chips, software) are expected to receive renewed market attention.