Major policy red envelopes issued, these integrated circuit companies will be exempt from tax for five years

On March 30, the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the Ministry of Industry and Information Technology issued the “Circular on Issues Concerning Enterprise Income Tax Policies on Integrated Circuit Manufacturing Enterprises” (the “Notice”), and the proposed policy preferences include: Exemption from qualifying enterprises and After a certain period of time, the income tax will be halved according to the statutory tax rate of 25%; in the past, the “two exemptions and three halvings” will be used to enjoy the “five exemptions, four and a half halal” further concessions. The "Notice" will form a significant advantage for domestic integrated circuit manufacturing companies.

The IC industry, commonly known as the "chip" industry, can be described as "industrial food". At present, the world's memory chip market is dominated by the United States, Japan and South Korea, and it is a highly monopolized oligopoly market. The 8G DDR4 memory that can be bought more than two hundred last year has now soared to more than 900 yuan. This situation is mainly due to the high degree of monopoly, so a large number of urgent development of domestic storage chips is of great strategic significance to breaking the foreign monopoly in the field of memory chips.

The signing of the U.S. trade memorandum may trigger trade disputes, which will reduce market risk appetite. Some companies in the areas of manufacturing, such as consumer electronics, PCB, and LED manufacturing, have relatively high income to the United States and will face pressure in the short term; the net import value in the semiconductor field is relatively large and is supported by the state. Trade disputes are expected to accelerate the process of localization.

The main benefits of this policy are corporate/project main bodies: Hefei Changxin DRAM Project (Zhaoyi Innovation), Yangtze River Storage NANDFlash Project, Silan Micro, Guoke Micro and Huali Microelectronics. In addition to the manufacturing process, the areas of packaging, testing, storage, equipment, and materials also benefit indirectly. The company believes that it will benefit listed companies: SMIC and Huahong Semiconductor manufacture; Huaneng Huatian Technology and Changjiang Electronics Technology; Core, easy innovation; equipment for the North Huachuang, Changchuan Technology, fine measurement electronics; materials are Jiangfeng Electronics, Shanghai Xinyang.