What’s New: China’s State Council, the cabinet, issued new rules (link in Chinese) Tuesday to bolster the country’s integrated circuit and software industries in support of the push to expand and upgrade domestic chip-making capacity.
The new rules outline tax incentives including as many as 10 years of tax exemptions for qualified integrated circuit makers. They also encourage companies to raise funds from share sales. The cabinet pledged to streamline the review procedure for integrated circuit and software companies’ domestic listings.
More to know: The new rules build on major policies issued in 2000 and 2011 to bolster the growth of the domestic chip-making and software industries, with even more generous fiscal support, analysts said.
Under the new rules, companies with the capacity to produce 28 nanometer or more-advanced integrated circuits can benefit from a 10-year exemption from corporate income tax if they have been in business for more than 15 years. Other companies can access different levels of tax incentives based on their business criteria.
The cabinet also encouraged private capital to set up funds to support the industries, pledged financing support to companies and vowed to enhance intellectual property protection.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
