|
China’s new policy on IC industry to debut in second half |
|
|
|
|
Written by Administrator
|
|
Friday, 07 July 2006 |
BEIJING, July 7 (InfoChina) – China is likely to publish new policy to support development of integrated circuit (IC) industry in the second half of this year, Li Ke, member of the council of the China Semiconductor Industry Association (CSIA), told the China Business News.
An official with CSIA disclosed some contents of the new policy in Shanghai on July 5. The new policy will include double preferential policy on credit and tax reduction for research and development (R&D), tax exemption and rebate for IC equipment, special funds support for designing enterprises, and special funds set up by the government.
The government special fund will have 12-25 million US dollars in the first year, and will increase year by year.
However, the detailed parts of the new policy has not finalized, according to Yang Xueming, a main participant in the drafting of the former Policies on Encouraging Development of Software and IC industry, known as the No. 18 document.
The new policy has solicited opinions and proposals from governmental departments, enterprises and industry, showing that the state has attached importance to the drafting of the new policy.
The VAT and tax rebate will still be the key part in the new policy, In the No. 18 document, the VAT rate of chips for sales on domestic market is 17% (domestic enterprises can get 14% tax rebate). This is the part leading the US side to hold that it has violated the WTO rules, and is regional protectionism. For this, the new policy must be different in this part from that of the No. 18 document.
An industry insider said that the policy has links with policies of many governmental departments such as the General Administration of Customs, the Ministry of Finance and the State Administration of Taxation. Every department is cautious in examining the new policy for the purpose of working out a detailed policy suitable to the development of China’s IC industry. This is one of the reasons causing the late publication of the new policy.
|
China Stock News