In order to encourage the development of the integrated circuit industry, the State Council issued the "Policy for Encouraging the Development of the Software Industry and Integrated Circuit Industry" in 2000. After 10 years of development, the domestic integrated circuit industry has achieved a rapid development that is obvious to all, and there are still large gaps and many deficiencies. To further accelerate the development of integrated circuits, a national strategic and basic industry, the State Council officially issued the “Circular of the State Council on Printing and Distributing Certain Policies to Further Encourage the Development of Software Industry and Integrated Circuit Industry†on January 28, 2011 2011] No. 4) (hereinafter referred to as "Document 4"), to further encourage and support the integrated circuit industry. The release of the new policy will continue to promote the investment and innovation of the industry. The Chinese IC industry will usher in a new round of rapid development.
Document No. 4 has given many advantages to the development of the software and integrated circuit industries from various aspects including taxation, investment and financing, research and development, import and export, human resources, intellectual property, and markets. Specifically, compared with the No. 18 document, the new No. 4 document has the following characteristics:
1. Greater policy support. Document No. 4 clearly states that “Continuing to implement the explicit policy of the document issued by the State Council on the 18th issue, which is inconsistent with this policy, is subject to this policy.†The support for the integrated circuit industry is further extended from the design company to the manufacturing enterprise to the package. Upstream and downstream enterprises in the industrial chain, testing, equipment, and materials industries, it can be seen that No. 4 document is an extension and extension of No. 18 document. The country’s policy support for the integrated circuit industry has been further enhanced.
2. The integrated circuit industry has been further emphasized. The 18th document contains a total of 13 chapters, of which the content of the specialized integrated circuit industry consists of only one chapter (chapter 12). The rest are all software aspects. The 4th document has a total of 8 chapters. The content of each chapter is relevant to the integrated circuit industry. As for the content of the policy, the full text of Document No. 4 totaled 34, of which 29 related to the integrated circuit industry. The total number of “software†in the full text of Document No. 18 appeared 106 times, and the term “integrated circuit†only appeared 24 times. In the full text of Document 4, there were a total of 82 "software" terms, and the frequency of "integrated circuits" has increased to 61. The improvement of the status of the integrated circuit industry in the new policy is evident.
3. Pay more attention to solving the inconvenience and difficulties encountered in the actual operation of the company. After 10 years of development, the domestic integrated circuit industry has grown from small to large, and many new integrated circuit companies have been established. These enterprises have accumulated certain experience in the development of several years and encountered many practical problems related to the characteristics of the integrated circuit industry in their daily production and operation. Document #4 gives targeted solutions to these problems. For example, in the short term, it is difficult to deduct the problem of taxation of VAT input tax that is difficult to be deducted in the short term, the issue of bonded materials imported by integrated circuit design companies, and the issue of import tariffs for self-use equipment that software companies and integrated circuit design companies need to temporarily import. Problems such as how to deal with IC related equipment and instruments, as well as how to deal with income tax concessions and other preferential policies when dealing with documents such as inspections and customs clearance.
4. We attach great importance to the implementation of the policy. "Difficulty in implementation" is a prominent problem encountered in the implementation of the 18th document. The country is fully aware of this problem and highlights the detailed and policy implementation in the No. 4 document. Document No. 18 stipulates: “The people’s governments of various regions and the relevant departments of the State Council shall, in accordance with the requirements of the “Policies Encouraging the Development of the Software Industry and the Integrated Circuit Industry,†hurry to study and formulate corresponding implementation rules and supporting policies, and organize the implementation as soon as possible.†Document No. 4 It further emphasizes: “All regions and relevant departments must attach great importance to it, strengthen organizational leadership and coordination, and quickly formulate detailed implementation rules and supporting measures to effectively implement the work. The Development and Reform Commission should follow up with relevant departments to keep track of the implementation of the policy. Strengthen supervision and guidance to ensure effective results." The new policy not only emphasizes "emphasizing importance," "emphasizing the development of detailed rules," "effective implementation," and "ensure effective results," but also clearly clarifies specific departments that supervise the implementation of policies, which can be said to be extremely effective.
Analysis of the positive significance of No. 4 document for the development of the domestic integrated circuit industry is mainly reflected in the following aspects:
The first is to strengthen the confidence and determination of industrial development. The issuance of the No. 4 document shows the country’s determination to focus on the development of the IC industry. This has undoubtedly strengthened the confidence and determination of its development for the majority of IC companies and companies planning to enter the IC industry. “Confidence is even more valuable than goldâ€, which has been fully demonstrated in the 10 years since the issuance of the 18th document. The forthcoming No. 4 document will continue to serve as a guide for the development of national policies on the development of the industry.
Secondly, it has attracted wide attention and attention from all parties. The No. 4 document has clearly required that “all regions and relevant departments should attach great importance to it.†In the future, the IC industry will undoubtedly continue to be given priority support as governments at all levels of government's priority industries. At the same time, through the publicity of documents by government agencies, industry, investment institutions, and the press, the “integrated circuit industry has much to do†information will be transmitted to all sectors of society. The forthcoming Document No. 4 will play an active role in the further optimization of the external environment for industrial development.
The third and most important thing is to give the industry much-needed benefits and support. Document No. 4 has already provided much needed concessions and support for the IC industry in areas such as finance, taxation, investment and financing, research and development, import and export, talent, intellectual property protection, and the market. Drawing on the experience of Document No. 18, the relevant ministries and commissions are in the process of formulating the implementation rules and will give more details on this basis. At the same time, there will be more detailed and more concessional contents in the corresponding local policies introduced by local governments in the future. The double effect of the No. 4 document on industrial support is self-evident.
Document No. 4 has given many advantages to the development of the software and integrated circuit industries from various aspects including taxation, investment and financing, research and development, import and export, human resources, intellectual property, and markets. Specifically, compared with the No. 18 document, the new No. 4 document has the following characteristics:
1. Greater policy support. Document No. 4 clearly states that “Continuing to implement the explicit policy of the document issued by the State Council on the 18th issue, which is inconsistent with this policy, is subject to this policy.†The support for the integrated circuit industry is further extended from the design company to the manufacturing enterprise to the package. Upstream and downstream enterprises in the industrial chain, testing, equipment, and materials industries, it can be seen that No. 4 document is an extension and extension of No. 18 document. The country’s policy support for the integrated circuit industry has been further enhanced.
2. The integrated circuit industry has been further emphasized. The 18th document contains a total of 13 chapters, of which the content of the specialized integrated circuit industry consists of only one chapter (chapter 12). The rest are all software aspects. The 4th document has a total of 8 chapters. The content of each chapter is relevant to the integrated circuit industry. As for the content of the policy, the full text of Document No. 4 totaled 34, of which 29 related to the integrated circuit industry. The total number of “software†in the full text of Document No. 18 appeared 106 times, and the term “integrated circuit†only appeared 24 times. In the full text of Document 4, there were a total of 82 "software" terms, and the frequency of "integrated circuits" has increased to 61. The improvement of the status of the integrated circuit industry in the new policy is evident.
3. Pay more attention to solving the inconvenience and difficulties encountered in the actual operation of the company. After 10 years of development, the domestic integrated circuit industry has grown from small to large, and many new integrated circuit companies have been established. These enterprises have accumulated certain experience in the development of several years and encountered many practical problems related to the characteristics of the integrated circuit industry in their daily production and operation. Document #4 gives targeted solutions to these problems. For example, in the short term, it is difficult to deduct the problem of taxation of VAT input tax that is difficult to be deducted in the short term, the issue of bonded materials imported by integrated circuit design companies, and the issue of import tariffs for self-use equipment that software companies and integrated circuit design companies need to temporarily import. Problems such as how to deal with IC related equipment and instruments, as well as how to deal with income tax concessions and other preferential policies when dealing with documents such as inspections and customs clearance.
4. We attach great importance to the implementation of the policy. "Difficulty in implementation" is a prominent problem encountered in the implementation of the 18th document. The country is fully aware of this problem and highlights the detailed and policy implementation in the No. 4 document. Document No. 18 stipulates: “The people’s governments of various regions and the relevant departments of the State Council shall, in accordance with the requirements of the “Policies Encouraging the Development of the Software Industry and the Integrated Circuit Industry,†hurry to study and formulate corresponding implementation rules and supporting policies, and organize the implementation as soon as possible.†Document No. 4 It further emphasizes: “All regions and relevant departments must attach great importance to it, strengthen organizational leadership and coordination, and quickly formulate detailed implementation rules and supporting measures to effectively implement the work. The Development and Reform Commission should follow up with relevant departments to keep track of the implementation of the policy. Strengthen supervision and guidance to ensure effective results." The new policy not only emphasizes "emphasizing importance," "emphasizing the development of detailed rules," "effective implementation," and "ensure effective results," but also clearly clarifies specific departments that supervise the implementation of policies, which can be said to be extremely effective.
Analysis of the positive significance of No. 4 document for the development of the domestic integrated circuit industry is mainly reflected in the following aspects:
The first is to strengthen the confidence and determination of industrial development. The issuance of the No. 4 document shows the country’s determination to focus on the development of the IC industry. This has undoubtedly strengthened the confidence and determination of its development for the majority of IC companies and companies planning to enter the IC industry. “Confidence is even more valuable than goldâ€, which has been fully demonstrated in the 10 years since the issuance of the 18th document. The forthcoming No. 4 document will continue to serve as a guide for the development of national policies on the development of the industry.
Secondly, it has attracted wide attention and attention from all parties. The No. 4 document has clearly required that “all regions and relevant departments should attach great importance to it.†In the future, the IC industry will undoubtedly continue to be given priority support as governments at all levels of government's priority industries. At the same time, through the publicity of documents by government agencies, industry, investment institutions, and the press, the “integrated circuit industry has much to do†information will be transmitted to all sectors of society. The forthcoming Document No. 4 will play an active role in the further optimization of the external environment for industrial development.
The third and most important thing is to give the industry much-needed benefits and support. Document No. 4 has already provided much needed concessions and support for the IC industry in areas such as finance, taxation, investment and financing, research and development, import and export, talent, intellectual property protection, and the market. Drawing on the experience of Document No. 18, the relevant ministries and commissions are in the process of formulating the implementation rules and will give more details on this basis. At the same time, there will be more detailed and more concessional contents in the corresponding local policies introduced by local governments in the future. The double effect of the No. 4 document on industrial support is self-evident.
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