Policy Support Increased, the Integrated Circuit Concept Will Soon Dominate

May 27 morning trading, integrated circuit concept unit collective rise, as of press time, datang telecom, light force technology, fulman electronics and other 7 shares trading limit, China microelectronics close trading limit, taiji shares, silan micro, Shanghai beiling and other shares of the collective pull.

Meanwhile, 5G plate performance is strong. As of press time, plate datang telecom, aowei communications, liyuan information and many other stocks trading limit, yi tong century, wu tong holdings, tianfu communications, guangtong and other stocks followed the rise.

With the advent of the digital economy era, integrated circuit industry is not only the basic industry for the development of national economy, but also an important component of the new generation of information technology in the strategic emerging industry.

In the face of the current new technical challenges and environment, on the afternoon of May 26, many experts and scholars in the field of integrated circuits discussed the new generation of integrated circuit technology at the 2019 pujiang innovation BBS future (science) BBS.

Zhang suxin, chairman of huahong group, believes that China will continue to be an important partner of the global integrated circuit industry system in the future.

He analyzed that China has been the world's largest integrated circuit market for many years in a row, accounting for an increasing proportion of the global market demand year by year, more than half of the global market in 2014, and 56.2 percent of the global market in 2017. "Integrated circuits are China's largest single import, exceeding us $200 billion for the sixth year in a row from 2013, and us $300 billion in 2018, making them the most valuable imported goods."

Moreover, among the world's top 20 IC companies, more than 50% of their performance comes from China, and two-thirds of their performance comes from China. Therefore, China is an irreplaceable important market for most of the global IC companies.

Zhang also stressed that the particularity and complexity of the IC industry lies in the fact that it has always been an industry of global cooperation. From China's current industrial chain in each link, there are shortcomings and shortcomings. Our country is good at and weak two respects should become the factor that industrial strategy makes need to consider.

Speaking about future trends, zhang said that integrated circuits have always been a key factor in mobile communication technology, which has greatly expanded the application market of integrated circuits. The arrival of 5G era will bring many opportunities to integrated circuits. The electronicalization of new energy vehicles will become the third largest integrated circuit market after PC and mobile communication in the future.

Since 2012, China's integrated circuit industry has grown at an average annual rate of more than 20 percent, with a total industry sales of 653.2 billion yuan in 2018, and the technology level is also improving, wang zhijun, vice minister of industry and information technology, said in a joint interview with news media on May 26, xinhua reported.

Next, China will integrate itself into the global IC industry ecosystem on a larger scale and at a deeper level, wang said. We will continue to pursue open, innovative and cooperative development, and promote the open, innovative development of all links in the industrial chain. We will continue to improve the environment and share opportunities, treat domestic and foreign investment equally, strengthen intellectual property protection, and share the development opportunities brought about by the Chinese market with the global IC industry.

 In addition, the ministry of finance recently issued "on the integrated circuit design and software industry enterprise income tax policy announcement." According to the announcement, the preferential period will be calculated from the profit-making year before December 31, 2018. From the first year to the second year, the corporate income tax will be exempted. From the third year to the fifth year, the corporate income tax will be halved according to the statutory tax rate of 25%, and the tax will be enjoyed until the expiration date.

Announcement, "qualified", refers to conform to the national tax administration of the ministry of finance, "on further encourage the development of software industry and integrated circuit industry enterprise income tax policy notice (caishui [2012] 27) and the national tax administration of the ministry of finance, the ministry of industry and information technology development and reform commission on software and integrated circuit industry enterprise income tax preferential policy issues related to notice (caishui [2016] no. 49) the prescribed conditions.

Citic securities pointed out that the continuation of the preferential policy of "two exemptions and three halving" of income tax for integrated circuit design enterprises shows the determination of the state to vigorously support the development of IC industry. It is expected that the follow-up countries will still increase policy and financial support for the IC industry and improve the current situation of "less core and less soul" in the domestic IC industry, with the focus on recommending huiting technology, zhaoyi innovation, shengbang shares, smic international and weyl shares.