China’s Ministry of Finance introduced a policy of up to ten years of income tax exemption for the semiconductor industry, and the expansion of the overall industry chain operators, is considered the largest semiconductor tax exemption policy ever. Taiwan business analysis is to attract the world’s semiconductor industry. Taiwan experts analyze that under the U.S. sanctions are still “stuck in the neck”, the dilemma is not resolved, short-term results are difficult to see.
China’s Ministry of Finance, the General Administration of Taxation, the Development and Reform Commission, the Ministry of Industry and Information Technology, announced on the 17th “to promote the high-quality development of integrated circuit industry and software industry policies”, for 28 nanometers, 65 nanometers and 0.13 microns below the semiconductor industry, the maximum exemption of 10 years income tax incentives. The new tax exemption policy will be applied retroactively from New Year’s Day this year. The new tax exemption policy will spread to the upstream and downstream industry chains such as design, equipment and materials, as long as the wafer foundry, IC design, packaging and testing, and materials related to the items produced by the technology below 0.13 microns can enjoy the benefits.
In response to China’s introduction of the latest semiconductor tax exemption policy, TSMC said in an interview with Radio Free Asia that it is still in the process of understanding.
Taiwan business president: the mainland wants to attract semiconductor factories to invest in China
National Taiwan Compatriots Investment Enterprise Friendship Association President, Shanghai Taiwan Chamber of Commerce President Li Zhenghong said in an interview with Radio Free Asia on the 18th, “The mainland Ministry of Finance sent this message to attract the world’s semiconductor manufacturers to the mainland to set up factories to invest.”
After the new crown pneumonia epidemic, out of China, from the red supply refining, the global supply chain restructuring of the voice of the rising. Li Zhenghong believes that the mainland semiconductor tax exemption can provide Taiwanese businessmen to think about the opportunity to deepen the layout of the mainland market: “provide Taiwan-invested enterprises with another opportunity to choose a more favorable policy, you can not be tilted to that place? After all, the Chinese mainland market is very large, and next year’s 14th Five-Year Plan, the beginning is to talk about technological innovation, so will certainly support the development of all technological innovation enterprises, of course, semiconductor is a very important part of. Should be a large domestic cycle to boost domestic demand will bring a very large market.”
China’s mainland Ministry of Finance introduced for the semiconductor industry maximum exemption of ten years income tax preferential policy, and the expansion of the overall industry chain operators, is considered the largest semiconductor tax exemption policy ever.
Taiwan experts: the mainland semiconductor lack of key core elements still in the hands of the United States
Taiwan Institute of Economic Research researcher and industry consultant Liu Pei-zhen interviewed by Radio Free Asia, Taiwan factory is unlikely to increase investment in China in the short term, because of the U.S.-China trade war, China is stuck in the U.S. The difficulty of China’s semiconductor development is that his supply chain is not like Taiwan can produce a clustering effect.
Liu Pei Zhen said: “will not be because of such a tax reduction policy, China is now stuck in the neck of the problem is solved, because he actually now no way to take forward very smoothly, not in the lack of money, or the lack of some policy support, he is still lacking is the key to those core elements, or in the hands of the United States.”
Liu Pei Zhen analysis, although China said that the sacrifice of stronger support policy, and is boasting unprecedented tax cuts, but because the United States in the short term on China’s semiconductor ban or export control orders still exist, so the development of China’s semiconductor needs a critical breakthrough, such as semiconductor equipment, materials, core chips, which can not be achieved in the short term. In addition, like the accumulation of patents and talents also need time.
China’s Ministry of Finance introduced a policy of up to ten years of income tax exemption for the semiconductor industry, and the expansion of the overall industry chain operators, is regarded as the largest semiconductor tax exemption policy ever.
China’s semiconductor industry is therefore accelerating to catch up with Taiwan’s leading technology? Worth watching
Liu Pei Zhen believes that China’s tax exemption policy, the impact on Taiwan’s semiconductor industry is limited. “In the wafer foundry, semiconductor packaging almost little impact, because Taiwan’s global market share and technology in this area is far superior to China. Even have investment in China for Taiwan factories, also applies in the scope of its tax exemption. The future only pay special attention to IC design, or memory manufacturing part, may be China in part of the mature products will have to accelerate the catch-up situation, this competitive pressure on us may be more visible.”
The Chinese government at this time to offer tax exemption policy before the outbreak of China’s semiconductor indicators of major manufacturers ZiGuang continuous debt, as well as Semiconductor Manufacturing International occurred in the former TSMC senior cadres Chiang Shang Yi, Liang Meng Song infighting, Liu Pei Zhen said, China’s semiconductor process, in this year a whole year are stuck in the U.S. and China’s technology war, it is difficult to achieve the expected goals, the prospect of 2025 will of course be anxious to carry out talent scouting unanticipated caused by infighting.
Liu Pei Zhen think: “on the recent many personnel regardless of strife or semiconductor investment in the state of the rotten building, or some previous investment is actually less than expected, so also take advantage of the situation to do policy support on the expansion, stabilize the entire Chinese semiconductor development of the military, to prevent the emergence of a chain of influence.”
The Ministry of Finance of mainland China introduced for the semiconductor industry maximum exemption of ten years income tax preferential policy, and the expansion of the overall industry chain operators, is regarded as the largest semiconductor tax exemption policy ever.
Taiwan scholars: the last resort for the government to run out of money to subsidize?
Lin Xiumin, a part-time lecturer at Soochow University, was interviewed by Radio Free Asia and analyzed that China’s tax exemption mainly attracts advanced processes, revealing that the government is afraid it has no money to save semiconductors.
Lin Xiumin said: “probably also the last resort, because the assumption that I have no way to use more money to subsidize your situation, such as purple I can not save, can do is to charge you less money to tax exemptions, tax breaks means to help you, but now China’s biggest problem is not in these, he cut taxes can not reduce how much money, the significance is not great, but at least there is a spiritual indicators, that the government is also very efforts in helping, revitalizing the semiconductor industry.”
Lin Xiumin pointed out that the semiconductor industry is mainly divided into three parts: manufacturing, packaging, packaging and testing, and IC design. The worst part of manufacturing is that Fujian Jinhua and SMIC have been sanctioned by the United States one after another, and key items cannot be bought even with money. And IC design, huawei under the Hesi is considered a thorn in the side of the United States, “must die”.
Semiconductor power foundation is empty? Technology war revealed
Lin Xiumin said: “He used to give money before, it seems to give money can not solve the problem. He gave a bunch of money just a bunch of liars out to cheat with you, before Wuhan Hongxin is the most typical example, see the state said to give money, a bunch of people to fight, looking for Jiang Dad, Jiang Shangyi to go over there. Now the Chinese Communist Party officials encounter the problem is that even if you want to give money, but also do not know who to give, simply use tax exemptions. But this benefit will not be great, especially the problems he is now encountering, including Huawei, SMIC, Ziguang, are not tax breaks can be solved.”
Lin Xiumin believes that, in retrospect, the most important thing about semiconductors is that the basic research should be solid, including chemical, physical, electrical, circuit design, calculation, to spend a lot of manpower time to invest in the development of key technologies, once the technology war begins, than the real gun, mainland China looks like a very high building cover very beautiful information kingdom, semiconductor power, in fact, the foundation underneath is empty.
Lin Xiumin said: “The characteristics of the Chinese people may be more like that quick success, or to do some surface, the way to make money will be faster. China’s main problem is that his foundation is empty, that is, his basic research, there is no way to support his upper layer of these semiconductor applications. Europe and the United States do not compare, better than Asia, you see how many physics prizes in Japan, chemistry, those are the real squatting work, but China has how many physics prizes, chemistry prize winners?”
Recent Comments