Up to 300 million yuan! Nansha’s “Nine Measures to Strengthen Core Systems” are released!

On June 25, the two-day IC NANSHA "2022 China Nansha International Integrated Circuit Industry Forum" held its opening ceremony. Nearly 100 chip industry entrepreneurs and experts from home and abroad gathered in Nansha to showcase development achievements, explore cutting-edge trends, and discuss development plans.

Nansha District Mayor Dong Ke focused on introducing the development of Nansha and the "Nansha Plan" at the opening ceremony. According to him, chip projects landing in Nansha can not only enjoy the national policy dividends and the "four-chain" integration policy, but also enjoy the latest "Nine Measures for Strengthening Chips" new policy, which supports major projects in nine aspects, including the settlement of major projects, corporate financing, improving the integrated circuit industry chain, subsidizing corporate productive electricity consumption, and supporting companies in carrying out automotive-grade certification.

In recent years, Nansha has grasped the future development trend of the integrated circuit industry, vigorously promoted the agglomeration development of the integrated circuit industry, introduced and cultivated a number of leading enterprises such as Xinyue Energy, Xinju Energy, and Lianjing Intelligent, and was the first in the country to realize the full industrial chain layout of wide bandgap semiconductors. It has initially formed a complete ecosystem covering the entire industrial chain of wide bandgap semiconductor design, manufacturing, packaging and testing, and materials. It has built an integrated circuit industrial park of about 1.97 square kilometers and established the Guangdong Semiconductor and Integrated Circuit Risk Sub-Fund with a scale of 2.1 billion yuan, forming a "core-to-core" prosperous development trend.

As a key measure to promote the high-quality development of the semiconductor and integrated circuit industry chain, Nansha has formulated the "Guangzhou Nansha New Area (Free Trade Zone) Support Measures for Promoting the Development of Semiconductor and Integrated Circuit Industries" (the "Nine Measures to Strengthen Chips"), which provide support in nine aspects, including the establishment of major projects, corporate financing, improving the integrated circuit industry chain, subsidizing corporate productive electricity consumption, and supporting companies in carrying out automotive-grade certification.

For example, newly introduced integrated circuit manufacturing companies will be given a settlement support of 10% of the total investment, up to 300 million yuan; a one-time subsidy of up to 30% of the actual investment in the construction of the company's public service platform will be given; and a subsidy of up to 20 million yuan will be given based on 50% of the company's actual wafer production costs.

In addition to the above-mentioned "Nine Measures to Strengthen Chips", Dong Ke mentioned that the "Nansha Plan" issued by the State Council has given Nansha three major fiscal and taxation policies:

First, enterprises in encouraged industries in the pilot zone will be subject to a reduced corporate income tax rate of 15%;

Second, further extend the loss carry-forward period for enterprises in Nansha's key high-tech industries;

Third, Hong Kong and Macao residents working in Nansha will be exempted from the portion of their personal income tax that exceeds the tax burden of Hong Kong and Macao.

At the same time, we will strengthen policy support in terms of funding and factors. From 2022 to 2024, an additional RMB 10 billion of local government debt limit will be allocated to Nansha every year. Guangdong Province and Guangzhou City will adopt methods such as tilting land use indicators to reasonably increase Nansha’s annual land use indicators.

"At present, Nansha is working hard to promote the implementation of policies so that more companies can enjoy the benefits of national policies," said Dong Ke.

The reporter interviewed Chen Yudong, President of Bosch China, and learned that the national policy dividends and the regional policy of "Nine Measures to Strengthen Chips" have greatly increased the popularity of Nansha, and also allowed multinational groups to have more freedom in the flow of branches and talents in Hong Kong and Macao. Chen Yudong also mentioned that the environment created by Nansha for talents is very attractive, whether it is support rewards, fiscal and tax incentives, or living environment, it is highly competitive, which is very critical for chip companies and industries that are hungry for talent. Therefore, Bosch China is considering landing the R&D and manufacturing center in South China in Nansha, and the specific landing plan is under negotiation.

The cultivation and growth of integrated circuit enterprises are closely related to the regional innovation and entrepreneurship environment. Nansha has launched the first "four-chain" integration policy system in a national-level new district.

On the one hand, it proposes common core policies with high gold content to support the operation and development of enterprises throughout their life cycle; on the other hand, based on the development needs of key industrial fields, major functional platforms and urgently needed and scarce talents, it introduces eight special policies for unicorn "metaverse", nine policies for "golden pasture", and ten policies for scientific and technological innovation.

The new policy has many clauses that are leading the country in terms of intensity, and it is expected that more than 20 billion yuan will be invested in the next five years. For example, settled enterprises can enjoy up to 100% support for the three economic contributions of enterprise operation, personal income of senior executives and equity exercise after listing; enterprises entering key clusters can be supported by rent-free for up to three years; new R&D institutions can be subsidized up to 100 million yuan, and R&D investment rewards can be up to 10 million yuan; high-level talent team projects can be rewarded up to 100 million yuan, Hong Kong and Macao youth can be rewarded up to 1 million yuan, and newly introduced talents with bachelor's degrees or above can be given a living allowance of up to 120,000 yuan.

(I) Introduce and cultivate high-quality integrated circuit enterprises. Provide 10% of the total investment, up to 300 million yuan, to integrated circuit manufacturing enterprises; provide 10% of the main business, up to 10 million yuan, to integrated circuit design enterprises.

(II) Support enterprises to build public service platforms. A one-time subsidy of up to RMB 30 million will be provided at 30% of the actual investment amount.

(III) Supporting enterprises in tape-out: 50% of the actual tape-out costs will be provided as annual subsidies, with a maximum total of RMB 20 million.

(IV) Support enterprises to use EDA tools and IP. Subsidies of 30% of the actual cost, up to RMB 1 million, will be provided.

(V) Subsidize enterprises’ productive electricity consumption: 50% of the electricity cost, up to RMB 5 million, will be subsidized.

(VI) Loan interest subsidy: For enterprises that enter the international industrial layout or undertake major national projects, a loan interest subsidy of 50% of the actual interest paid, up to 5 million yuan, will be granted.

(VII) Supporting corporate financing. For enterprises that obtain fund financing, a follow-up investment of 30% of the financing amount, up to 50 million yuan, will be given; for listed companies, a reward of up to 10 million yuan will be given.

(VIII) Support enterprises to carry out vehicle-grade certification. Subsidize 50% of the actual certification costs of vehicle-grade certification, up to RMB 1 million.

(IX) Support the coordinated development of the industrial chain. For enterprises in the zone that purchase products or services from non-related enterprises, a subsidy of 5% of the actual purchase amount will be provided, with a maximum of RMB 3 million.

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