Exemption of import tariff for integrated circuits and other industries

The wave of global core shortage is not flat, and the wave is rising again, so it is urgent to make chips domestically. On March 29, the Ministry of Finance and other three departments issued the notice on supporting the import tax policies for the development of integrated circuit industry and software industry (hereinafter referred to as the notice), specifying the import tax policies for supporting the development of integrated circuit industry and software industry.

The circular lists a variety of situations that can be exempted from import duties, such as the logic circuit and memory manufacturing enterprises with integrated circuit line width less than 65nm, and the self use production raw materials and consumables that can not be produced in China or whose performance can not meet the demand can be exempted from import duties.

In fact, this is not the first time that the IC and software industries have benefited from taxation. In August last year, the State Council issued several policies to promote the high-quality development of the integrated circuit industry and software industry in the new era, including finance and taxation, investment and financing, research and development, import and export, talents, intellectual property and other aspects.

Bu Rixin, a partner of chuangdao investment consulting, told Beijing Business Daily that the import tax preference for the integrated circuit and software industry is very guiding, focusing on the real “bottleneck” links such as semiconductor materials and key equipment, which fully reflects our weakness in the corresponding links.

Integrated circuit industry and software industry are the core of information industry, and also the key forces leading a new round of scientific and technological revolution and industrial change. But in the past, the US sanctions on chips and the growing shortage of cores are warning us that we can’t wait to solve the problems of chip shortage and the “neck sticking” of key technologies. Obviously, the national level has been aware of this problem for a long time, and in recent years, many departments have spoken out one after another.

At the press conference of the State Council Information Office recently, Minister of science and Technology Wang Zhigang mentioned that he would mainly focus on some key core technologies and cutting-edge basic research in the fields of integrated circuits, software, high-end chips, new generation semiconductor technology, etc., and make use of national key R & D plans to give support. The Ministry of industry and information technology said that the Chinese government will give strong support to the chip industry at the national level to jointly create a market-oriented, rule of law and international business environment and an ecological environment for industrial development.

China’s integrated circuit market is huge, and the chips needed are heavily dependent on imports, so the danger is self-evident. What’s more, as the basis of the new generation of information technology, integrated circuits play a crucial role in China’s economic and social development. The proposal of the CPC Central Committee on formulating the fourteenth five year plan for national economic and social development and the long-term goals for the year 2035 also clearly proposes to develop strategic emerging industries, aim at frontier fields such as artificial intelligence, quantum information and integrated circuits, and implement a number of forward-looking and strategic national major science and technology projects.

Bu Rixin mentioned that in the chip manufacturing sector, there are significant short boards in China, especially in the material and equipment fields upstream of chip manufacturing. It is easy to get out of control. If one link is stuck, the lifeline of the whole industry will be stuck. However, the corresponding industrial links have the reality of high technical barriers and small market scale. Therefore, it is not realistic to rely on the strength of the market to catch up with and surpass in the case of great backwardness. Therefore, the state needs to focus on the core and weak links of the industry in terms of financial support and policy guidance.

A person in the industry also mentioned to Beijing Business Daily that in the chip manufacturing industry, it is still very important for China to be “stuck”. For example, in terms of lithography, even if it can be imported in time, many people need to operate in the industrial chain of using lithography, which involves the corresponding talent supply, which is also what we lack. In other words, in the whole chip manufacturing industry, it needs many fulcrums to leverage a module. The lithography is only the core support point, and we lack many other support points. It’s not only that we can’t manufacture the lithography, but also that many corresponding technologies are not covered in this ring.

Xiang Ligang, a communications expert, also said that chip manufacturing has really gained the support of the state on a large scale. That is to say, in recent years, the chip sanctions incident has brought greater pressure. In this case, the whole society has accelerated the investment in chip production and manufacturing. In this process, the government and relevant departments have issued a lot of policy support. With these support, the government has made great progress recently In recent years, many projects have been promoted in many fields, which will certainly play a huge role in promoting the whole chip manufacturing industry.

Beijing Business News (reporter Yang Yuehan)

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