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      Thirty one policies support the development of sem

      On February 9, the State Council issued the "further encourage the development of software and IC industry, a number of policy" (Guo Fa [2011] 4, that "the new No. 18"), which is issued by the State in 2000 " encourage the development of software and IC industries, "No. 18, which continues to foster the guide policy of development of software and IC industry . New No. 18 strengthen its efforts to support the software and IC industry development put forward 31 concrete measures from taxation, investment and financing, research and development, import and export policies,intensify efforts to support the developoment of software and IC industry further 

          Incentives clearly will continue to implement preferential policies for software value-added tax, and the first time to encourage 、support enterprises to increase software enterprises and IC industry resource integration. Analysts pointed that, in line with expected industry  will be focused which had turned to Pratt & Whitney before , the focus is to foster domestic leading enterprises, which will help the industry to enhance the degree of concentration further. 


          It is understood that the original No. 18 was enacted in 2000. Since its issued, Chinese software and IC industry ushered "golden 10 years" of the rapid development." "However, with comparsion of some overseas countries and regions, China's software and IC industry development base are weak relatively,innovation ability is weak, lack of a real industrial chain ." Insider analysis. 

      "The release of new policy measures is making software and IC industry come true, the average annual growth rate is more than 30% before eight years of software industry, with the support of the new policy, its development also have been an optimistic attitude, at least also extended over ten years. "insider analysis. 

          New policy than the original No. 18 differences, increasing the investment and financing supporting and other elements mainly. The majority of tax incentives have been extended and strengthened. Especially for tax incentives of the IC corporate, this "new No. 18" is more clear than the original No. 18 , in the following text designated 0.25um or invest more than 80 billion preferential corporate, income tax change from the "two three half-free "to"  five half-free ;New No. 18, "also have preferential taxation policies that take 0.8um process of IC which have undertaken the following" two exemption three half "of the income tax concessions, improving the policy side , and get more opportunity to benefit power semiconductor device manufacturing companies . It's printed out that will give income tax benefits related businesses which are IC packaging and testing companies, key enterprises as well as special materials,IC special equipment enterprise. 

          In addition, this "new No. 18" bring up supporting enterprise going out strategic ,promoting exports of IC; Meanwhile for the international outsourcing business service for the enterprise specifically obliged the Ministry of Commerce create a condition that enterprises to develop new market. Since the IC packaging and testing enterprises mostly gear to overseas markets currently,which develop packaging and testing outsourcing services business, the new policy will be a big plus on packaging and testing companies in China. That "going out" strategy, That "going out" strategy will enable IC packaging and testing outsourcing services companies to benefit

          "In addition aboved, on the side of New Policy supports transregional reorganization and acquisition, the State Council departments and local governments will actively guide, prevent sttting all forms of barriers. Furthermore,various of venture capital funds will also be involved in supporting small-and-medium-sized software enterprises and IC enterprise entrepreneurship, those companies whose due to lack of financing fixed assets and financing frozen will be clearly benefit. " 





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