Taipei, Thursday, October 23, 2014 15:10 (GMT+8)
mostly cloudy
Taipei
25°C
Consolidation expected in China's semiconductor industry, says Digitimes Research
Press release [Wednesday 10 August 2011]

During China's 12th Five Year Plan (FYP), the State Council has set out six policies to further the development of the software and semiconductor industries: strengthening investment and financing, expanding support for research and development, implementing tax incentives, improving measures to train and attract talent, strict enforcement of protections for IP rights, and market regulation to maintain order, says a new DIGITIMES Research Special Report titled "Expectations for China's semiconductor industry during the 12th Five Year Plan."

While the local semiconductor industry has received long-term support as one of China's strategic industries since the 9th Five Year Plan (FYP) in 1996, it was expected to receive less attention when it was specifically included in the seven new strategic industries in State Council Rule 32 (2010) only as one part of the infrastructure for the next generation IT industry. This was a warning sign that its importance to China's development and economic growth may be declining. However, the Executive Meeting of the State Council convened on January 12, 2011 concluded that the software and semiconductor industries were new national strategic industries, as well as vital foundations for the creation of an information-based society in China, the report explains.

Analyzing the various measures in the six policy areas, DIGITIMES Research finds that all the measures relating to fund raising for semiconductor firms, including the direct investment of funds by the central government, support for major state projects, and tax breaks on business tax and corporate income tax, involve direct funding or tax support from the government, or even the creation of venture capital funds for investing in the semiconductor industry and promoting mergers between companies; it is also evident that the government is investing its own resources through both direct and indirect methods. All this shows that promoting mergers between firms in the China semiconductor industry is a key direction for government policy.

For more information about the report, visit Digitimes Research.

State Council's six major measures to develop the software and semiconductor industries, announced on January 12, 2011

Policy

Details

Strengthen investment fund raising support

(1) Investment from central government budgets in eligible semiconductor firms and technology R&D
(2) Support corporate restructuring and mergers
(3) Establish equity or venture capital investment funds
(4) Promote the use of IP rights and other intangible assets as loan collateral in order to expand financing channels for companies

Strengthen support for research and development

(1) Use major national projects to support key technology R&D for the semiconductor industry
(2) Set up strategic alliances involving cooperation between academia and industry

Put tax incentives in place

(1) Give business tax and corporate income tax incentives to eligible businesses

Enhance measures to develop and recruit talent

(1) Improve the bonus system for researchers
(2) Encourage eligible higher education institutions and semiconductor firms to jointly establish semiconductor research institutions
(3) Expedite the recruitment of high-level talent from overseas

Strictly implement measures to protect IP rights

(1) Crack down on all forms of IP violations in accordance with the law
(2) Support companies that submit patent applications overseas in accordance with the law

Strengthen regulations to maintain market order

(1) Strengthen anti-monopoly measures
(2) Improve import/export support policies

Source: Digitimes Research, July 2011

About DIGITIMES Research

DIGITIMES Research is the research arm of DIGITIMES Inc., Taiwan's leading high-tech media outlet. Operating as an independent business unit, DIGITIMES Research focuses on monitoring key high-tech industries, while also guiding clients toward suitable new business as well. Market intelligence and analysis is provided to more than 1,000 corporate customers worldwide. Research and consulting services cover a full range of industries, including information and communications technology (ICT), flat panel display (FPD), renewable energy and semiconductor design and manufacturing.

Contacts

Michael McManus (Michael.mcmanus@digitimes.com)
Shannen Yang (Shannen.yang@digitmes.com)

Topics: Page 2

Realtime news
  • Supply chain estimated to deliver 50 million units of iPhone 6 in 2014

    IT + CE | 4min ago

  • Plug-in electric vehicles expected to make up 2.4% of global light-duty vehicle sales by 2023, says Navigant

    Green energy | 17min ago

  • Taiwan shipments of LCD TVs expected to reach 19.69 million in 2H14

    Displays | 18min ago

  • Everlight Electronics likely to net NT$500-600 million for 3Q14

    LED | 39min ago

  • Taiwan panel industry output value to increase 1.6-3.1% in 2015, says IEK

    Displays | 41min ago

  • Digitimes Research: Apple turns to focus on price management to save tablet business

    IT + CE | 1h 15min ago

  • AUO reduces working hours for factory workers

    Displays | 3h 48min ago

  • LG Display posts 9% sequential increase in 3Q14 revenues

    Displays | 3h 50min ago

  • eMemory NeoEE IP advances into automotive electronics applications

    Bits + chips | 3h 55min ago

  • KYEC posts EPS NT$1.71 for January-September period

    Bits + chips - Newswatch | 3h 58min ago

  • Winbond appoints ex-Nanya executive as senior VP for product development

    Bits + chips | 4h 9min ago

  • LED driver IC vendor Silergy set for brisk sales in 4Q14

    Bits + chips | Oct 22, 22:20

  • Sony Mobile to amend strategy for releasing flagship models

    Mobile + telecom | Oct 22, 22:12

Pause
 | 
View more

Trends and forecasts for the China FPD industry, 2014-2017

CHINA FPD | Oct 6, 12:29

With China being the world's IT production center and a country with some of the strongest consumer demand, along with benefits on custom tax, funding, loans, and subsidies provided by the government, China's FPD industry continues to show strong growth. Local...

Taiwan servers and the global server market, 2014

RESEARCH EXTRAS | Oct 3, 12:19

Taiwan makers have successfully entered the supply chain of the Internet data center (IDC) industry and may contribute over 90% of the global server shipments in 2014. Combined revenues from related product lines such as motherboards, back-end assembly, storage...

Taiwan notebooks – 3Q 2014

TAIWAN ICT | Oct 23, 11:55

US notebook brand vendors' stronger-than-expected sales fueled their Taiwan-based ODM partners' shipment growth in the third quarter. In general, the enterprise segment saw better shipment momentum than the consumer segment, as Microsoft's termination of support...

Taiwan LCD monitors – 2Q 2014

TAIWAN FPD | Aug 25, 14:48

Taiwan's monitor shipments grew 10% in the second quarter compared to a low first-quarter base. With panel makers reducing their supply of monitor applications and monitor vendors reluctant to increase their shipments, Taiwan's makers will only see a single-digit...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

DIGITIMES Research Tracker Services
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.