Software and Integrated Circuit "National Six"

On the 12th, Premier Wen Jiabao chaired a State Council executive meeting and finalized six measures to “further encourage the development of the software industry and the integrated circuit industry.” The executive meeting of the State Council requires all regions and relevant departments to step up the development of detailed implementation rules and supporting measures.

The six measures include: strengthening investment and financing support, increasing support for research and development, implementation of tax incentives, personnel training and introduction, implementation of software and integrated circuit intellectual property protection system, and standardizing the market order.

Jiang Shoulei, secretary general of the Shanghai Integrated Circuit Industry Association, said yesterday that the introduction of the policy is "great news." Among them, "strengthening investment and financing support" is a major breakthrough.

As is well known in the industry, the software development and integrated circuit design industry is a light asset industry, and this type of small-scale enterprise is generally subject to financing difficulties. During the financial crisis in 2008, a number of chip design companies in the Zhangjiang Hi-tech Park in Shanghai announced the closure of the capital chain. If intellectual property and other intangible assets can be used to pledge loans, it will undoubtedly ease the pain of “light assets”.

Available data show that China's software and integrated circuit industry has been developing for 10 years, but the foundation for the development of the integrated circuit industry is still very weak. Capital, technology, and talent are still three barriers to the development of China's software and integrated circuit industries.

In addition, after the country has strengthened investment and financing support, it is possible to integrate and reorganize industries and enterprises. According to Gu Wenjun, a senior analyst at iSuppli, an authoritative research institute, it is the right time for merger and reorganization of China's software and integrated circuit industries. “With the support of policies and financial support, leading companies have become bigger and stronger through mergers and acquisitions, and for the rest of the world. IC companies are ready for competition."

According to Gu Wenjun, “Another advantage of capital binding is that it can make the industry huddle. At present, China’s integrated circuit industry is still small and dispersed, and it does not have groups.” According to reports, the Taiwanese side has recently introduced a series of IC development and support policies. , Taiwan’s chip design company, MediaTek, merged and acquired several companies based on the new policy to increase its own strength.

In the ten years of mainland software and integrated circuit development, there have been few cases of local companies acquiring local companies. Most of them are foreign-funded enterprises that merge with local companies. Previously, Shanghai TD chip design company Kai Ming Information would rather choose to close down than to choose to be acquired by a competitor. This is a negative example of policy vacancy.

Wang Qinsheng, chairman of the chip design branch of the China Semiconductor Industry Association, said earlier that the current number of more than 500 chip companies needs to be reduced to 50, and the mainland chip design industry will be able to strengthen.

The aforementioned State Council executive meeting also proposed that the VAT preferential policies for software products will continue to be implemented, and business tax and income tax incentives will be granted to qualified enterprises. This made Chinese software companies relieved. At the end of last year, the preferential policy for promoting the development of the software industry for 10 years (abbreviation No. 18) officially expired, and the industry has been waiting for policy signals.