2012 China's IC industry will grow faster

According to the research report of the 2012 “China's IC industry development prospects” published recently by the CCID think tank, it shows that China’s IC industry in 2012 has gradually emerged as a policy driving effect, a more balanced and reasonable industrial structure, financial capital investment, and taxation. Under favorable conditions, it will maintain rapid growth.

The report pointed out that the first is that the “Guo Fa No. 4 Document” has boosted the growth rate of the industrial scale steadily. In 2011, the "GuoFa No. 4 Document" was formally released, and the domestic integrated circuit industry environment will be further improved. From January to September 2011, China's integrated circuit industry realized a total sales revenue of 118.13 billion yuan, a year-on-year growth rate of 19.5%. Sales revenue will be close to 210 billion yuan, and the growth rate will reach 21%, returning to a steady and rapid growth track. Second, the proportion of the three industries in design, manufacturing, packaging and testing has become more balanced. It is estimated that in 2012, the annual sales revenue of the IC design industry will increase by nearly 40% year-on-year, accounting for 30% of the industry, and the industrial structure will be further balanced and rationalized. Third, there are favorable conditions for financial investment and taxation. The state provided financial support for technological transformation funds, major national science and technology projects, electronic information industry development funds, and special funds for integrated circuit industry research and development. Fourth, emerging applications such as mobile Internet, information technology transformation, and energy conservation and emission reduction have provided a broad domestic market space for the development of China's integrated circuit industry during 2012 and even during the “Twelfth Five-Year Plan” period. Fifthly, the resource integration in the industry will continue to increase. In 2012, the integration of resources in China's integrated circuit industry will enter a new round of peak periods. The number and scale of international mergers and acquisitions will increase, and cross-industry chain integration may occur.

The report believes that in 2012, China's integrated circuit industry will face outstanding issues such as the lack of growth in the global market, the “competitiveness in the entire industry chain” and the fleeting opportunities for the mobile Internet. The report proposes to speed up the promotion of the overall competitiveness of the industrial chain around new growth points, seize domestic and international opportunities, and respond to international challenges. First, in-depth implementation of the 4th document of the State Development and Accelerate the issuance of specific measures to implement the VAT of integrated circuit products, the income tax of integrated circuit enterprises, and preferential policies for business tax. The second is to promote the development and industrialization of smart mobile terminal SoC chips, and to encourage chip manufacturers and complete machine manufacturers to strengthen cooperation, and implement a number of “one-stop” special projects from smart phones, terminals, systems, and applications around smart mobile terminals. The third is to guide the merger and reorganization of integrated circuit companies, encourage enterprises to expand international cooperation, and integrate international resources for mergers and acquisitions. Fourth, efforts will be made to expand industrial investment and financing channels, and encourage national policy financial institutions to support key integrated circuit technological transformation, technological innovation, and industrialization projects, and support integrated circuit companies to raise funds for listing at home and abroad. The fifth is to improve and strengthen the construction of the public service system, concentrate on superior resources, establish a national integrated circuit research and development center that integrates production, education and research, and provide enterprises with product development and testing environments and application promotion services.

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