Mainland China Encourages Outline of Semiconductor Industry's Wafer and Cross-strait Layout

The mainland China State Council decided to adopt a preferential taxation and other policies to vigorously foster semiconductor industries such as IC design, wafer fabrication, and packaging and testing. The landing of China's semiconductor industry is expected to form a huge magnetic effect, which is expected to drive the industry to accelerate the layout of the mainland. Taiwan Semiconductor Manufacturing Co., Ltd., and Sun Moonlight said that they would like to see this new policy launched.

Domestic wafers Hutchison Semiconductor and UMC are optimistic. TSMC executives said yesterday (9th) that they would be happy to see the implementation of this policy on the mainland and emphasized that this offer is a good thing.

China's packaging and testing industry yesterday said that this move will attract the foundry industry to increase investment, which will in turn stimulate the demand for the latter part of the packaging and testing; related companies also revealed that it will speed up the mainland's layout. At present, the investment and packaging and testing plants in the mainland are mainly Riyueguang, Xipin, Licheng and Jingyuandian, of which the largest is Sunyueguang Investment.

As this policy is also extended to the IC design industry, even through the import of raw materials to provide assistance to the seven aspects of the tax concessions and investment, research and development, import and export, talent, intellectual property, market, etc., the impact level also covers the upstream chip design . This policy of the State Council undoubtedly declares its full support for the development of the semiconductor industry.