Computing - Server
The Successes of Chinese IC Industry Policy
September 17, 2004 / Sean Kao
42 Page, Topical Report

Abstract

With the successful implementation of the Chinese government's policies for promoting the growth of the domestic semiconductor industry, China has got off to a good start in the development of its IC design, wafer foundry, packaging, and test industries. China is gradually developing a comprehensive semiconductor industry supply chain, thereby helping to strengthen China's position as the world's factory floor. This report begins by examining the results achieved in the implementation of the Chinese government's IC industry development policy, followed by an examination of the significance of the Tenth Five-year Plan, State Council Document No. 18 and the policies adopted by local government authorities. This report will also forecast important future trends in the development of the Chinese IC industry.
  •  List of Topics
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Now that China is a member of the WTO, the protectionist industrial policy on which China has relied for so long will need to be adjusted in response to pressure from the international community. Nevertheless, given the Chinese government's commitment to aggressive development of the hi-tech sector, it can be anticipated that the government will continue to provide support for the development of the domestic IC industry, with the methods employed to achieve this becoming both more opaque and more complex. In addition to the adjustment of existing incentive measures, the Chinese government can be expected to set new industry standards for products that make use of ICs, and to establish new service requirements with regard to providing customer service from close at hand; at the same time, the central government will continue to provide funding for basic research, to support the growth of local IC enterprises, and to encourage Chinese studying and working overseas to come back and work in the IC sector in China. The government may even arrange for key domestic companies to receive a steady supply of orders so as to stimulate their growth.

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