Development and Reform Commission response to the chip project failure: to cause significant losses or cause major risks to be informed accountability

The National Development and Reform Commission (NDRC) held its regular October press conference this morning, with the NDRC spokesman in attendance.

The following is a transcript.

China News Service Reporter:

With recent reports of rotten chip projects raising concerns, how do we promote this industry while avoiding a flurry of bogus and fake projects?

Meng Wei:

Thank you for your question. This is a question that we all care about recently. The integrated circuit industry is a strategic, fundamental and pioneering industry for the national economy and social development, and is of great importance. In recent years, the CPC Central Committee and the State Council have attached great importance to the development of IC industry and introduced a series of policies and measures to support and guide the healthy development of the industry. Under the support and promotion of relevant policies, China’s IC industry development momentum has been positive, the technical level has been greatly improved, and enterprises have accelerated their growth and expansion.In 2019, China’s IC sales revenue was 756.2 billion yuan, an increase of 15.8% year-on-year, and has become one of the fastest-growing regions in the world in the development of integrated circuits.

But as the reporter friend mentioned, we also noticed that the domestic investment in integrated circuit industry enthusiasm is rising, some inexperienced, no technology, no talent “three no’s” enterprises into the integrated circuit industry, individual places on the law of integrated circuit development is not enough knowledge, blindly on the project, low-level duplication of construction risks show, and even some individual project construction stalled, vacant plant, resulting in a waste of resources.

The National Development and Reform Commission has always attached great importance to the healthy and orderly development of the integrated circuit industry, in accordance with the Party Central Committee and the State Council, together with the relevant departments to strengthen the top-level design, pay close attention to industrial planning and layout, and strive to maintain industrial development order. For the current chaos in the industry, the next step will focus on four areas of work.

First, strengthen the planning layout. In accordance with the “main concentration, regional agglomeration” principle of development, strengthen the service and guidance of the construction of major integrated circuit projects, orderly guidance and standardization of integrated circuit industry development order, good planning and layout. Guide the industry to strengthen self-discipline and avoid vicious competition.

Second, improve the policy system. Accelerate the implementation of Guo Fa [2020] No. 8, that is, on the new period to promote the integrated circuit industry and software industry of high-quality development of a number of policies, pay close attention to the introduction of supporting measures to further optimize the environment for the development of integrated circuit industry, regulate the market order, improve the industry’s innovation capacity and development quality, guide the healthy development of the industry.

Third, the establishment of preventive mechanisms. Establish a long-term working mechanism of “early sorting, early detection, early feedback, early disposal”, strengthen risk alert, strengthen communication and coordination with banking institutions, investment funds and other parties to reduce the risk of major integrated circuit project investment.

Fourthly, the parties’ responsibilities should be consolidated. Insist that enterprises and financial institutions independent decision-making, self-responsibility, and improve industrial concentration. Guide the local strengthening of the construction of major projects to understand the risks, in accordance with the principle of “who supports, who is responsible”, causing significant losses or cause major risks, be informed accountability. Thank you!