According to US media reports, China has announced favorable policies to support chip manufacturing, with the main purpose of revitalizing the domestic semiconductor industry in the form of tax reduction. For some integrated circuit manufacturers with an operating period of more than 15 years, they will get a 10-year tax exemption period.
The US media claimed that China's chip manufacturing industry launched favorable policies
At the same time, the report also claimed that many links, from chip design to software manufacturing, can get preferential tax reduction policies. With the support of this policy, China will greatly improve the self-sufficiency rate of semiconductors, and plans to increase the self-sufficiency rate to 70% by 2025. The implementation of this policy in China is closely related to Sino-US relations some time ago.
According to reports, in fact, China has long attached importance to stimulating the development of the chip industry. After all, compared with the United States and other regions, Chinese mainland is still relatively backward in this field. The report also believes that the U.S. sanctions against Huawei have fully exposed the outstanding shortcomings of China's chip manufacturing industry and its dependence on foreign manufacturers.
China faces technical shortcomings
According to reports, Huawei mobile phones in China are more dependent on chips of a certain scale in made in taiwan. After all, no enterprises in mainland China can produce this type of chips. According to Huawei's current demand, even the largest chip manufacturer in Shanghai, China can't meet its demand. Of course, in the semiconductor industry, the supply chain is also very complex.
Although Huawei has the right to design chips independently, the manufacturing involves other industries. After all, the manufacturing process of chips requires very complex equipment, which is the core technology of some companies and is in the hands of a few companies. For example, the equipment produced by Asme Holding Company in the Netherlands is the core machine for manufacturing certain chips, which cannot be produced by Chinese technology at present.
SMIC's high-profile listing
According to Singapore media reports, China's largest chip manufacturer achieved a net profit of US$ 138 million in the second quarter of this year, an increase of six times compared with the previous one, which is a new high.
Although the environment is constantly changing, the demand of the chip market is still very strong. At present, the consumption growth of electronic products is very significant, which must rely on the support of advanced technology.
Taking SMIC as an example, if the company can continue to maintain high production capacity, it will continue to achieve a high growth in business quota. At present, SMIC has been listed in high profile recently. In view of the fact that the domestic chip market is trying to get rid of its dependence on foreign countries, it is a great development opportunity, and SMIC has seized this opportunity.
Of course, this is both an opportunity and a challenge. In terms of the current chip demand and the sanctions imposed by the United States on Chinese related enterprises, Chinese chip manufacturers will still face greater pressure in the future.
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