According to US media reports, China has announced favorable policies to support chip manufacturing. The main purpose is to revitalize the domestic semiconductor industry in the form of tax reduction. For some manufacturers of integrated circuits that have been operating for more than 15 years, a 10-year tax-free period will be granted.
US media claims China's chip manufacturing industry launches favorable policies
At the same time, the report also claims that tax cuts can be granted to many sectors, from chip design to software manufacturing. With the support of this policy, China will greatly increase 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 the Sino US relations some time ago.
According to reports, China has long been paying attention to the development of the chip industry. After all, China is still relatively backward in the field compared to the United States and other regions. According to the report, the U.S. sanctions against Huawei also fully exposed the outstanding weaknesses of China's chip manufacturing industry and its dependence on foreign manufacturers.
China faces technical weakness
According to the report, Huawei mobile phones in China are more dependent on chips of a certain scale made in Taiwan. After all, no mainland enterprise can produce such chips. Even the largest chip manufacturer in Shanghai, China, cannot meet Huawei's current demand. Of course, in the semiconductor industry, the supply chain is also very complex.
Although Huawei has the right to independently design chips, its manufacturing involves other industries. After all, the manufacturing process of chips requires very complex equipment, and these devices are the core technologies of some companies, which are in the hands of a very few companies. For example, the equipment produced by asmai holding company in the Netherlands is the core machine for manufacturing some chips. At present, China's technology is unable to produce such equipment.
SMIC international high profile listing
According to Singapore media reports, China's largest chip manufacturer realized a net profit of 138 million US dollars in the second quarter of this year, with a year-on-year increase of six times, which can be described as a new record.
Although the environment is constantly changing, the demand of chip market is still very strong. At present, the consumption growth of electronic products is very significant, we must rely on the support of advanced technology.
Taking SMIC as an example, if the company can continue to maintain high production capacity, then it will continue to achieve a high growth in business volume. At present, SMIC has been listed on the market with high profile recently. In view of the fact that the domestic chip market is trying to get rid of the dependence on foreign countries, it can be said that it is a good development opportunity, and SMIC has grasped the 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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