Ministry of Industry and Information Technology: my country's integrated circuit sales revenue in 2020 was 884.8 billion yuan, with an average growth rate of 20%

On March 1, the State Council Information Office held a press conference.

In response to the question of "what specific goals or production plans does China's chip industry have in the '14th Five-Year Plan' and the changes in the global environment", Tian Yulong, member of the Party Leadership Group, chief engineer and spokesperson of the Ministry of Industry and Information Technology, said that chip integrated circuits are the cornerstone of the information society and an important foundation of information technology. It should be said that the high-quality development of the chip industry is related to the development of the modern information industry and the industrial chain. The development of China's integrated circuit industry in the "13th Five-Year Plan" is generally very impressive, and the scale of the industry continues to grow. According to estimates by China's semiconductor industry, my country's integrated circuit sales revenue reached 884.8 billion yuan in 2020, with an average growth rate of 20%, which is three times the growth rate of the global industry in the same period. Breakthroughs have also been made in technological innovation. At present, manufacturing processes, packaging technologies, and key equipment materials have been significantly improved. The strength of enterprises has steadily improved, and a number of new leading enterprises have emerged in the industrial chain such as design, manufacturing, and packaging and testing.

Tian Yulong pointed out that, in general, the Chinese government attaches great importance to the chip industry and the integrated circuit industry, and has issued policies to promote the high-quality development of the integrated circuit industry and the software industry, and comprehensively optimize and improve the relevant environmental policies for the high-quality development of the chip and integrated circuit industry. There are several main measures:

First, we will increase the intensity of corporate tax reduction. For integrated circuit enterprises, corporate income tax will be reduced or exempted starting from the profit-making year. These policies have given a great impetus to the development of enterprises.

Second, further strengthen and improve the foundation. Chips involve many basic issues, including materials, processes, equipment, and a relatively long industrial chain. Only by laying a solid foundation can the chip industry continue to innovate and develop. In addition, the integrated circuit industry itself also needs a good ecological environment and a platform to form a complementary and mutually supportive process in the industrial chain, so building a platform and optimizing the ecology are very critical. The development of the chip industry is entirely guided by applications, so in the automotive, industrial, medical, and education, especially the rapid development of the online economy and digital economy since the epidemic, it has provided a very broad market for the development of the chip industry. The development of the chip industry also depends on talents, so the government and the country have taken a series of measures in talent reserves and talent training. The chip industry is a global industrial chain, and we must increase cooperation.

Overall, the development of the chip industry faces opportunities as well as challenges. We need to strengthen cooperation on a global scale to jointly build a chip industry chain to make it healthier and more sustainable, which will not only provide support for the development of China's information society, but also provide strong support for the development of global information technology. The Chinese government will provide strong support at the national level to jointly create a market-oriented, legal and international business environment and an ecological environment for industrial development.