China's changing semiconductor industry - Government policies as the 12th Five Year Plan enters its third year

During the 12th FYP period, only semiconductor companies established from 2011 are eligible for tax incentives. Moreover, only profitable firms working in areas consistent with government goals will be offered subsidies, with a quota of 40 firms also imposed. These requirements and assessments may encourage IC design startups, while also focusing R&D resources on product and technology sectors the government views as promising. The ultimate impact will probably be to weed out poorly performing firms and expedite the consolidation of the industry.

• Central government policy goals and tax break policies for the semiconductor industry in China

• Chart 1: Key policies to stimulate the China semiconductor industry during the 12th FYP

• Policy goals and focal points for development during the 12th FYP

• China semiconductor industry development goals

• Chart 2: China semiconductor industry output value and industry structure goals for the 12th FYP period (CNYb)

• Focus of semiconductor industry development during the 12th FYP

• Chart 3: 10 key development areas for the China IC design industry during the 12th FYP period in MIIT Plan Document 565 (2011)

• Chart 4: Key development areas for the China IC manufacturing industry during the 12th FYP period in MIIT Plan Document 565 (2011)

• Analysis of important new tax and subsidy policies for the 12th FYP

• Chart 5: Central government policy framework to support the China semiconductor industry during the 12th FYP period

• Tax Document 27 (2012)

• Chart 6: Provisions on eligibility for state tax support for semiconductor enterprises in Tax Document 27 (4)

• NDRC High Tech Document 2413 (2012)

• Chart 7: Conditions for eligibility for government support for IC design firms set out in NDRC High Tech Document 2413 (2012)

• NDRC High Tech Document 2687 (2012)

• Chart 8: Standards for eligibility for government policy support for IC design firms set out in NDRC High Tech Document 2687 (2012)

• Comparison of semiconductor industry subsidy polices during the 11th FYP and 12th FYP periods

• Table 1: Comparison of IC manufacturing tax incentives during the 11th FYP and 12th FYP periods

• Table 2: Comparison of IC design tax incentives during the 11th FYP and 12th FYP periods

• Support for the semiconductor industry from major state projects during the 12th FYP period

• IC manufacturing Major Projects

• Table 3: Major National Science & Technology Projects for IC manufacturing and IC packaging in China, 2009-2013

• Major Projects for IC design

• Chart 9: Major National Science & Technology Projects for IC design in China, 2009-2013

• Local government and industrial park support for the semiconductor industry

• Chart 10: Regions providing subsidies or support to IC design companies from 2013

• IC design subsidy policies in Xiamen and Jinan

• Chart 11: IC design industry subsidy policies in Xiamen and Jinan

• IC design subsidy policies in the Dalian High Tech Industrial Zone

• Chart 12: IC design industry subsidy policies in the Dalian High Tech Industrial Zone

• IC design subsidy policies in TEDA, Tianjin

• Chart 13: IC design industry subsidy policies in TEDA, Tianjin

• IC design subsidy policies in SSL, Dongguan

• Chart 14: IC design industry subsidy policies in SSL, Dongguan

• IC design subsidy policies in the Shanghai Integrated Circuit Design Incubation Center

• Chart 15: IC design subsidy policies in Shanghai Integrated Circuit Design Incubation Center (industry hub) during the 12th FYP period

• Semiconductor industry subsides from major projects in Shanghai

• Chart 16: Shanghai's support for major semiconductor industry projects during the 12th FYP period

• Conclusion

• Stricter eligibility requirements show China is providing markedly less support for the IC design industry during the 12th FYP period

• Chart 17: Government support for the IC design industry has markedly declined during the 12th FYP period

• Local governments continue to support IC design, while industry is capable of delivering new products more rapidly

• Chart 18: Local government and industrial park subsidies to IC design companies during the 12th FYP period

• The number of China-based IC design companies listed on stock markets is likely to increase during the 12th FYP period

• Chart 19: Changing subsidies available to a new IC design company as it develops in the 12th FYP period