Shandong Government Suggestions on Implementing New Document 4 to Speed up IC Industry Development
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1 Shandong Government Suggestions on Implementing New Document 4 to Speed up IC Industry Development Guiding Ideas, Basic Principles and Development Goals: 1. Guiding ideas: Implement plans and policies of central government and the State Council, give full play to the decisive role of the market in allocating resources, improve the government functions, focus on enhance independent innovation capacity; implement the strategy of two ends first and then the middle, highlight advantages and make the IC design and IC packing and testing industry bigger and stronger, promote IC manufacturing industry timely, and drive the development of key equipment and materials. Innovate the development mode by the principles of businessoriented, demand-driven, whole set and system-guided, form an industrial structure with IC design as the leader, manufacturing as the base, and supporting industry as the bolster. 2. Basic Principles: Adhere to the combination of market-led and government-guided. Take full use of the large demand of the domestic market, build a good market environment, motivate firms and promote IC applications. Meanwhile, in the key areas affecting the economic and social development, government should involve by guiding planning, policy incentives and organization coordinating. Adhere to the combination of science and technology innovation and industrialization. Improve the innovation mechanism, enhance the innovation capacity, strive to promote original innovation, vigorously conduct integrated innovation and joint research, actively participate in international division of labor, strengthen the import, absorb and then innovate, take full use of global innovation resources, make breakthroughs in core technologies, obtain relevant IPR. At the same time, increase policy support and coordinate guiding efforts to accelerate innovation achievements transformation, and promote the industrialization process. Adhere to the combination of focusing on key areas and enhancing the overall industry. Choose fields with optimal conditions as the development priorities, meanwhile, make overall planning and layout for the whole industry and develop coordinately. Strive to foster industrial clusters and boost predominant regions to develop preferentially. Adhere to the combination of current development and long-term development. Based on the current situation, promote fields constrain the industry development seriously to boost industrial restructuring and upgrading and speed up the formation of industrial development advantages. At the same time, have the long-term perspective, grasp new trends in the industry, and deploy major frontier areas early. 3. Development goals: By 2015, buildup policy environment and innovation mechanism benefiting the IC industry development. Achieve sales revenue over RMB 20 billion. IC design in memory, financial IC card, storage control chip, digital home, mobile intelligent terminals, power electronics, sensors and other fields closes to the world-first-class level. Electronic
2 design automation (EDA) tools, circuit simulation and verification technology, gold wire used in integrated circuit, carrier tape and other material technologies reach the worldfirst-class level. Buildup IC design centers foster and import 3-5 IC manufacturers, APT and materials firms with international advanced technologies, buildup 2 IC industrialization zones with domestic influence. By 2020, achieve sales revenue over RMB 80 billion. IC design in memory, financial IC card, digital home, MEMS and other key areas reaches world-first-class level. Key products are applied to domestic information system widely. Achieve scale production in IC manufacturing; key IC materials and packaging and testing technologies reach international advanced level. Buildup a technology-advanced, safe and reliable, selfcontrolled IC industry system. A number of enterprises with strong international competitiveness enter the domestic first class. Development Emphasis: 1. Develop IC design preferentially: Implement the IC design-led strategy; enhance the supporting capacity of Jinan National IC Design Industrial Base and other parks. Turning towards the big demands from internet of things, cloud computing, consumer electronics, information security, industrial control, smart cards and RFID tags, automotive electronics and other industries, promote the cooperation between IC design firms and whole set firms. Focus on developing EDA tools, computer memory chips, internet of things core device chips, digital audio and video processing chip, high-end communications chips, information security chip, SoC of embedded terminal products, automotive electronic control chip, digital instrument chip, sensor chip and various types of IC cards and electronic tags, form a group of firms with core technologies and a number of products with independent IPR. 2. Develop packaging and testing actively: Consolidate the advantages of the city of Jinan, Zibo and Weihai in the fields of memory chip, IC card, and semiconductor devices packaging and testing. Support to increase the wafer testing capabilities, actively import ATP firms according to the current ATP industry direction and the local demand, and focus on the development of CSP, WLP, TSV, 3D and other advanced packaging and testing technologies. Actively develop memory chip packaging, all types of IC cards packaging, radio frequency identification (RFID) chip packaging, power electronics chip packaging, and module packaging, expand the industrial scale, improve packaging and testing level, and strive to build Shandong as the domestic key memory chip and IC card chip packaging and testing base. 3. Speed up the construction of IC manufacturing lines: Relying on the leading firms in the province, take international cooperation as the breakthrough point, attract fund and investment, and achieve leaping development in production, management, technology and products by cooperating with international leading firms. Boost the construction of LSI manufacturing lines timely, support domestic and foreign companies set wholly-owned factories or joint-ventures in the province to promote the construction of
3 international advanced IC manufacturing lines and achieve scale production as soon as possible. Enhance the digestion, absorption and re-innovation of the import technologies, and promote coordination and interaction between IC design and manufacturing. 4. Boost the development of IC equipment, and materials: Take key equipment and material as the breakthrough point, support qualified enterprises to involve in the R&D and production of IC equipment, post-packaging equipment, materials and accessories through innovating, importing absorbing and then innovating, joint venture, and wholly foreign owned firms. Taking use of the existing IC materials firms, further expand the industrial scale, expand product types and improve product performance and quality. Focus on the development of IC gold wire, alumina wire, lead frame, socket, substrate carrier tape and other products, meanwhile focus on the development of copper, copper clad laminates, electronic ceramic substrates, silicon crystals, silicon carbide materials and deep processing products. Form a domestically important IC materials R&D and producing export base, becoming a key support industrial base of the nation. 5. Improve IC public service platforms: Further encourage qualified regions, industrial development zones or software parks to construct and improve relevant IC design public service platform, test platform, industry collaborated services platform and talents exchange and training platform by the governmentguided, social-shared and market-oriented operation mode, and trough increasing government investment and policy support, and absorbing social and international capital. Provide IC design firms and entrepreneurial talent with EDA design tools, test environment and technologies, investment, market, legal advice, talent training and other supports, reduce the entry barriers and start-up costs, and attract firms and talents to form industry gathering. Focus on the IC public services platform construction in Jinan and Qingdao, form development advantages, and provide support to enterprises and universities IC talent training. Safeguard Measures: 1. Strengthen leadership organization, construct good industrial development environment. Establish communication and coordination mechanism on major issues participated by relevant departments, research and formulate the province's IC industry major policy and strategic objectives, implement relevant taxation, personnel, land and other favorable policies, coordinate and solve major key issues related to industrial development and allocation of resources, create operating mechanisms, supporting environment and service system suits industrial development. Establish IC Industry Development Experts Committee comprising relevant IC experts, conduct investigation, assessment and provide advices on major issues of the IC industry development. 2. Establish industry equity fund, establish full equipped investment and financing mechanism. Adhere to the principle of enterprise-led, government-supported, improve risk investment mechanism, and expand international financing. Play the guiding role of government fund, encourage and attract large corporations, financial institutions, and foreign capital to form the IC industry equity fund, implement market-oriented operation, supporting IC industry chain to
4 develop coordinately, and promoting firms to enhance productivity and mergers and acquisitions. Encourage regional governments to establish local IC industry equity funds, focusing on supporting mergers and acquisitions, listing, talent training and public service platform. Expand the ways of financial support from technology and product R&D subsidies to industry financing system construction, talent training system construction and industrial service construction. 3. Coordinate financial support funding channels, increase financial support. Further increase the IC industry development support, co-ordinate various scientific and technological innovation and industrial development funds, and focus on supporting public service platform, enterprises R&D, science and technological innovation, talent training. Play the guiding role of government financial fund in leading social capital, guide and encourage all kinds of social capital entering the industry. Governments, departments and financial institutions at all levels should strengthen their support to projects which are included in the national, provincial or municipal planning. Take full use of the complementary advantages of policy finance and commercial finance, encourage and guide the banking institutions to continue to increase credit support to the industry, and to innovate credit products and services suit the IC industry. Encourage IC firms to be listed home and overseas and issue various types of debt financing instruments. Encourage governments at all levels to support key projects by help building factories and giving interest subsidies. 4. Implement preferential tax policies. Further strength the implementation of the State Council s preferential tax policies; continue to implement the imported duty-free policy for major IC equipment, product key components and raw materials, and the imported duty-free policy for key equipment, product components and raw materials used in National S&T major projects but cannot be produced domestically. Finance and tax department and industry department should establish a joint working mechanism for coordinating policy implementation process. 5. Strengthen the application of safe and reliable hardware and software products. Organize and implement application plans for safe and reliable hardware and software products, promote the use of technology-advanced, safe and reliable ICs, basic software and whole set system in key areas and sectors, civilian-benefiting projects and financial funds supported information projects. Take full advantage of the information consuming expanding policy to promote R&D and application of various types of end-using devices based on safe and reliable hardware and software. 6. Speed up the independent innovation system construction, enhance the sustainable development capacity. Further strengthen the construction of provincial ID design center, and rely on the center and relevant enterprises and research institutions to promote the R&D and application of new products and new technologies with independent IPR. Strengthen the enterprises technological innovation platform construction, encourage to establish national, provincial and municipal technology centers and key laboratories in IC design, IC manufacturing and raw material production to enhance the core technological competitiveness. Strengthen the joint of
5 research, education, production and application; enhance the conversion rate of IC research achievement and industrial technical support capabilities. 7. Strengthen talent import and training, promote the integration of production and education, and create a favorable environment of human resources. Establish and improve the IC training system, encourage and support the cooperation between enterprises and universities in building discipline, student teaching and practice base, and R$D centers. Speed up the construction of university IC discipline and IC professional training institution, forming a talent team with multi-level personnel. Sponsor IC talents study abroad, cultivating international, high-level personnel. Strengthen the talents import works, and relevant expenditures. Develop incentive mechanism to stimulate talent innovation, creating a comfortable environment suits talent development. 8. Strengthen international cooperation and continue to expand the opening. Further strengthen the cooperation with large enterprises from Japan, Korea, Europe, US and Taiwan. Build high-level R&D center, manufacturing center, operation center and IC production lines, improve the whole industrial chain and solve the problems of technology, market demand and supply, technology experts, operation and management by international cooperation. Seize the current International IC industry strategic adjustment and restructuring opportunities, encourage domestic enterprises to consolidate international resources, expand international market, and achieve the leaping development of Shandong IC industry.
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