The day before yesterday, the executive meeting of the State Council studied and deployed policies and measures to further encourage the development of software and integrated circuit industries. The industry insiders asserted that the original 18th article (namely, "Several Policy on Further Encouraging the Development of the Software and Integrated Circuit Industry" that expired at the end of last year) was replaced by an alternative policy (namely, the "New 18 Document") that the industry insiders said. Already available.

Yesterday, the concept shares of software and integrated circuits rose all the way, and some stocks rose significantly. However, people in the semiconductor industry seem to be less optimistic and even worry.

"The executive meeting of the State Council mentioned that the software industry will continue to implement a preferential VAT policy for software products and provide business tax and income tax incentives to eligible companies, but it does not say that it is applicable to the semiconductor industry." A semiconductor company in Shanghai intends to expand production Executives of industrial companies said that this is very important for companies.

In the original document No. 18, this concessionary clause was originally described very complete. The original stipulates that "since June 24, 2000 to the end of 2010, VAT general taxpayers will sell their self-manufactured integrated circuit products (including monocrystalline silicon wafers) and collect VAT at a statutory rate of 17%. After that, the portion of the actual value-added tax that exceeds 6% is refunded immediately. Moreover, the tax refunds used by companies for the research and development of integrated circuit products and the expansion of reproduction cannot be used as corporate income taxable income.

In 2004, this policy suffered from "pressing" by the United States. Since 2005, the clause applicable to the semiconductor industry has been abolished.

"This clause applies to both software and semiconductors. Why does the United States simply take the semiconductor preferential terms to say things? This shows that if the semiconductor industry rises, it is the most dangerous position of its superiority." The above said.

In fact, as of now, on the Chinese mainland market, except for the chips used in MP3, MP4, cameras and other products, almost all PC processors come from the United States, and more than 90% of mobile phone processors come from overseas, of which the United States also occupies the largest position.

If there is still no such clause after the official document comes out, the company may suffer from rising costs.

According to Jiang Shoulei, secretary-general of the Shanghai Integrated Circuit Industry Association, a 12-inch project was newly built and the total investment was about 1.5 billion to 3 billion U.S. dollars. If the above preferences are cancelled, the company's production investment costs will be about 400 million U.S. dollars higher.

"If you can restore the preferential level provided by the original document," said Xu Jinshou, vice chairman of the China Semiconductor Industry Association. Despite this, many experts still stated that the signal passed by the State Council's executive meeting is a “great happy event” and that the benefits may be reflected in other forms. Once the New Deal is intensified, it is expected to open up the golden 10 years of the future development of China’s semiconductor and software industry.

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