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The integrated circuit (chip) industry is one of the pain points of my country's development. Now the biggest material imported by my country every year is not oil, natural gas, or food, but chips. Imports amounted to more than 200 billion U.S. dollars a year, equivalent to more than 1 trillion yuan. Not having its own "Chinese core" is also a major hidden danger to national security.

According to data from the "Integrated Circuit Industry Market Demand Forecast and Investment Strategic Planning Analysis Report" released by the Prospective Industry Research Institute, before 2008, my country's integrated circuit equipment basically relied on imports. In 2009, my country's integrated circuit equipment market was only 969 million US dollars. The import scale and self-made scale are respectively 900 million US dollars and 69 million US dollars, and the equipment self-made proportion is 7% (CISA data, the same below this paragraph). Since 2010, my country has accelerated equipment imports. In 2016, the scale of equipment imports reached 3.6 billion U.S. dollars, four times that of 2009. The self-made equipment rate has dropped to 3%, and imports are heavily dependent.

　　2009-2018 my country's integrated circuit equipment market scale, growth rate and self-made ratio

In order to improve the situation since the import of integrated circuit equipment, the state has set up a major science and technology project-the very large-scale integrated circuit manufacturing equipment and complete process technology project (referred to as the 02 special project). Since 2011, the serious problem of my country's import dependence on integrated circuits has begun to gradually improve, and 15 types of 12-inch main equipment have passed the 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 project and other domestic integrated circuit development funds, the domestic integrated circuit equipment market surged by 283% in 2010, reaching 3.707 billion yuan.

In 2011 and 2012, affected by the overall economic development, there was a decline. After 2013, the growth was restored. The compound growth rate between 2013 and 2017 was as high as 22.11%. The increase mainly came from thin film manufacturing equipment, ion implantation equipment and packaging equipment. .

　　 Integrated circuit chips are related to information security, economic security, and even national defense security, and are the top priority of the national development strategy. The core technology in this area cannot be controlled by others, so the development is supported from the national strategic level. 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 Issues concerning Corporate Income Tax Policies for Integrated Circuit Manufacturers", which stipulates the preferential tax policies for integrated circuit manufacturers or projects, and encourages companies to continue to strengthen R&D activities , Continuously improve research and development capabilities. The notice will be implemented from January 1, 2018. The support of taxation policy will help increase the localization rate of domestic integrated circuits.

The notice also proposes that after January 1, 2018, investment in new integrated circuit production enterprises or projects with a line width of less than 65 nanometers or an investment of more than 15 billion yuan, and an operating period of more than 15 years, will be from the first year to the fifth year. Annual corporate income tax will be exempted, and corporate income tax will be levied at a halving rate of 25% from the sixth year to the tenth year, and enjoy until the expiration of the term.

The notice pointed out that integrated circuit manufacturers established before December 31, 2017 but not profitable, with a line width of less than 0.25 microns or an investment of more than 8 billion yuan, and an operating period of more than 15 years, are the first since the profit-making year. From the year to the fifth year, corporate income tax will be exempted, and from the sixth to the tenth year, the corporate income tax will be levied at a halved rate of 25% at the statutory tax rate, and enjoy until the expiry of the term.

Integrated circuit manufacturing enterprises established before December 31, 2017 but not profitable with integrated circuit line widths less than 0.8 microns (inclusive) will be exempted from corporate income tax for the first year to the second year from the profitable year, and from the third year to the third year. Corporate income tax will be levied at a halved rate of 25% for five years, and enjoy until the expiration of the term.

According to the report of the Foresight Industry Research Institute, there will be 62 new wafer fabs in operation worldwide from 2017 to 2020, of which 26 will be in mainland China. According to data from the China Semiconductor Industry Association, the new investment in domestic wafer manufacturing lines will 20, with a total investment of 125.5 billion U.S. dollars.