According to the Chinese Communist Party‘s customs statistics, China will import 543.5 billion integrated circuits in 2020, with an import value of $350 billion, making it the number one imported commodity. Due to the high degree of foreign dependence, on Monday, the Ministry of Finance of the Communist Party of China and three other departments issued new regulations on semiconductor imports exempt from import tariffs.
On Monday (March 29), the CPC Ministry of Finance, General Administration of Customs, the General Administration of Taxation jointly issued an announcement to support the development of the semiconductor industry and software industry import tariffs, mainly meet the specified conditions of semiconductor-related imports, from July 27, 2020 to December 31, 2030 are exempt from import tariffs.
According to the announcement, for integrated circuit line width of less than 65 nanometers of logic circuits, memory manufacturers and line width of less than 0.25 microns of the characteristic process integrated circuit manufacturers, the import of domestic production or performance can not meet the demand for self-use production of raw materials, consumables, clean room special construction materials, supporting systems and integrated circuit production equipment (including imported equipment and domestic equipment) spare parts, etc. Exempt from import tariffs.
In addition, for the integrated circuit industry’s key raw materials, spare parts (i.e., target materials, photoresist, mask plate, cover loading board, polishing pad, polishing fluid, 8-inch and above silicon single crystal, 8-inch and above silicon wafer) manufacturers, the import of domestic production can not be produced or performance can not meet the demand for self-use production of raw materials, consumables, also exempt from import tariffs.
The announcement said that since July 27, 2020, to the first batch of duty-free import enterprises list issued within 30 days, has been levied on the exemption of tariff taxes will be refunded.
China’s external dependence on chips remains high.
According to the Chinese Communist Party’s customs statistics, China imported 543.5 billion integrated circuits in 2020, up 22.1% year-on-year; the import amount of $350.4 billion, up 14.6% year-on-year; both hitting a record high.
The 21st Century Finance reported on March 29 that according to Wei Shaojun, director of the Department of Micro and Nano Electronics and director of the Institute of Microelectronics at Tsinghua University, China purchases 2/3 of the world’s chips, about half of which are exported abroad with the whole machine, and China uses 34% of the world’s chips locally. The value of China’s imports of integrated circuits began to exceed $2,000 in 2013, surpassing the amount of oil imports, and later its imports have successively surpassed oil + steel, oil + steel + Food, becoming the number one imported commodity.
He introduced, China’s own production of semiconductors accounted for about 7.9% of the world, which means that there are still 26%, nearly $ 120 billion of the market relies on pure imports.
Wei Shaojun believes that part of this foreign dependence is strategic. At present, China imports the most CPU processors (including DSP digital signal processors) and memory, these two types of products in China’s use of integrated circuits accounted for more than 70%. Among them, processors are mainly produced by Intel, IBM and AMD in the United States; the main global memory manufacturers are four, one of which is American, one Japanese, and the other two are Korean.
In order to solve the shortage of chips, key technologies are controlled by foreign countries and other problems, the Chinese Communist Party a number of government departments recently launched a succession of new semiconductor policy.
The Chinese Communist Party’s Minister of Science and Technology Wang Zhi had said at a press conference held by the Communist Party’s State Council Information Office that China will mainly focus on some key core technologies and leading edge basic research in the fields of IC, software, high-order chips, new generation semiconductor technology, etc., using national key R&D programs and other support.
And the Ministry of Industry and Information Technology of the Communist Party of China said it will give strong support to the semiconductor industry at the national level.
In 2000, 2011 and 2014, the CPC issued several policies to encourage the development of software industry and integrated circuit industry, several policies to further encourage the development of software industry and integrated circuit industry, and the Outline for the Promotion of National Integrated Circuit Industry Development.
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