Zhuhai "gives red envelopes" to integrated circuit companies to support the implementation of production and manufacturing projects

Recently, the "Implementation Rules for the Management of Special Funds for Promoting the Development of the Integrated Circuit Industry in Zhuhai" (hereinafter referred to as the "Implementation Rules") were issued.

The integrated circuit industry is one of the five 100 billion-level industrial clusters that Zhuhai is focusing on building. The "Implementation Rules" focus on supporting 19 major directions, effectively integrating resources, promoting the development of the integrated circuit industry, supporting the settlement and capital increase of production and manufacturing projects, and providing a maximum cumulative reward of 100 million yuan for a single project. Projects selected as Zhuhai's innovative and entrepreneurial teams will be given a maximum subsidy of 100 million yuan.

1. Supporting the establishment and capital increase of manufacturing projects

For newly established integrated circuit manufacturing projects, a maximum reward of RMB 2 million will be given for every USD 10 million or RMB 100 million of the annual paid-in registered capital (monetary contribution) before the project goes into production. For existing or newly established integrated circuit manufacturing projects that have been put into production, a maximum reward of RMB 3 million will be given for every USD 10 million or RMB 100 million of the annual additional paid-in registered capital (monetary contribution, retained earnings transfer or allocated but unpaid transfer). The maximum cumulative reward for a single project is RMB 100 million.

2. Support the establishment and development of headquarters projects

Listed integrated circuit companies, recognized leading enterprises in various links of the domestic integrated circuit industry (top ten in design and manufacturing, top five in other fields), and integrated circuit unicorn enterprises that set up headquarters or regional headquarters in Zhuhai will be given a one-time reward of 10 million yuan and 3 million yuan respectively. For existing enterprises in Zhuhai that reach the above-mentioned leading enterprise rankings for the first time, or newly become unicorn enterprises, a one-time reward of the same amount will be given.

3. Support innovative and entrepreneurial team projects

Projects selected as Zhuhai's innovative and entrepreneurial teams will be given a maximum of 100 million yuan in funding; projects selected as Guangdong Province's innovative and entrepreneurial teams will be given matching funding support at a 1:1 ratio based on the provincial financial funding amount; projects selected as Zhuhai's entrepreneurial talents will be given a maximum of 2 million yuan in funding.

4. Reduce the cost of productive land for new manufacturing projects

For new integrated circuit manufacturing, packaging and testing or equipment and material projects that are land-intensive and belong to the priority development industries of Guangdong Province, preferential land prices for industrial land will be implemented. The land transfer base price can be implemented at 70% of the minimum price standard for industrial land corresponding to the land grade of the district where the land is located.

V. Support the introduction of major strategic projects

We will focus on supporting major strategic projects in the integrated circuit industry chain that are oriented toward the world's technological frontiers, national strategic needs, the commanding heights of the industrial chain, and aimed at improving the industrial ecology and industrial capacity.

1. For newly introduced enterprises in manufacturing, packaging and testing, equipment and materials, high-end components, advanced packaging substrates, etc. with a total investment of RMB 500 million (inclusive) or more, subsidies shall be provided at a rate not exceeding 30% of their actual industrialization investment.

2. For newly introduced high-end R&D enterprises with a total investment of RMB 300 million (inclusive) or more, or design enterprises of advanced special process technology, subsidies shall be provided at a rate not exceeding 30% of their actual investment in introducing and developing advanced technologies.

6. Support the development of core and key technologies in the industry

Aiming at the high-end fields and key links of Zhuhai's integrated circuit industry, we support enterprises to carry out technological research and development activities with major innovations and breakthroughs. We support technological breakthroughs that have an overall and driving effect on industrial development and can form major innovative achievements with independent intellectual property rights and fill industrial gaps within 3-5 years. We provide R&D support every year through competitive project evaluation, R&D start-up funds, major national (provincial) science and technology special projects, and technical bounty awards.

Competitive project review and support is based on projects, and supports the core and key technology research and development of key industries and major core equipment through free subsidies. In principle, the support amount for a single project is fixed at 3-5 million yuan, and the subsidy amount shall not exceed 30% of the total investment of the project. Zhuhai's science and technology venture capital institutions are encouraged to make equity investments in projects.

Support for major national (provincial) science and technology projects refers to providing equal support for projects that have received major science and technology project support from national (provincial) science and technology departments since 2017 (inclusive), but the total amount shall not exceed RMB 5 million. If there are clear requirements from higher-level departments, they shall be reported to the municipal government for approval before implementation.

7. Supporting the MPW tape-out of integrated circuit chips and the first round of tape-out of engineering products

1. For integrated circuit design companies, universities or research institutions that carry out multi-project wafer (MPW) tape-outs, subsidies of no more than 70% of the tape-out costs will be given, with an annual subsidy cap of RMB 3 million.

2. For integrated circuit design companies, universities or research institutions that have completed the first round of full mask tape-out before mass production of engineering products, a subsidy of no more than 50% of the first round of tape-out costs will be given, with an annual subsidy cap of RMB 5 million.

8. Support the purchase, rental and development of EDA tool software

1. For integrated circuit enterprises, universities or research institutions that purchase EDA tool software (including software upgrade costs), subsidies no higher than 30% of their actual expenditure will be provided, with an annual subsidy cap of RMB 2 million.

2. For integrated circuit enterprises, universities or research institutions that rent EDA tool software from the integrated circuit public service platform, subsidies no higher than 50% of their actual expenditure will be given, with an annual subsidy cap of RMB 3 million.

3. Integrated circuit enterprises, universities or research institutions engaged in the research and development of EDA tool software will be given subsidies not exceeding 50% of the EDA research and development expenses, with an annual subsidy cap of RMB 10 million.

9. Support the purchase and reuse of shared IP cores for high-end R&D

1. For integrated circuit enterprises, universities or research institutions that purchase IP cores to develop high-end chips, advanced or special processes, subsidies will be provided at a rate not exceeding 30% of their actual expenditure on purchasing IP cores, with an annual subsidy cap of RMB 3 million.

2. For integrated circuit enterprises, universities or research institutions that reuse the shared integrated circuit public technology service platform IP, subsidies no higher than 50% of their actual annual service expenditure will be given, with an annual subsidy cap of RMB 1 million.

10. Support test verification

Units that carry out testing, verification and related certification of the functions, performance, reliability, compatibility and failure analysis of engineering chips will be given a subsidy of no more than 50% of the actual expenses incurred, with an annual subsidy cap of RMB 3 million.

11. Supporting enterprises to grow bigger and stronger

1. For integrated circuit design and research and development companies, if their annual operating income exceeds 100 million yuan, 300 million yuan, 500 million yuan, 1 billion yuan, 1.5 billion yuan, and 2 billion yuan for the first time, a one-time reward and subsidy of no more than 1 million yuan, 2 million yuan, 3 million yuan, 5 million yuan, 6 million yuan, and 8 million yuan will be given respectively.

2. For integrated circuit manufacturing, packaging and testing, equipment and materials companies, whose annual operating income exceeds 300 million yuan, 500 million yuan, 1 billion yuan, 3 billion yuan, 5 billion yuan and 10 billion yuan for the first time, a one-time reward and subsidy of no more than 2 million yuan, 3 million yuan, 5 million yuan, 8 million yuan, 10 million yuan and 15 million yuan will be given respectively.

If the same enterprise meets multiple conditions, it will be supported according to the principle of "time priority, highest priority and no duplication".

Integrated circuit companies with annual operating income below 100 million yuan will be supported in accordance with the "Several Policy Measures of Zhuhai City to Further Support the High-quality Development of the Real Economy" (Zhugongxin [2019] No. 613) "Small to Medium-sized Enterprises" reward and subsidy clauses.

12. Supporting M&A of high-end projects

For Zhuhai enterprises that acquire domestic or foreign integrated circuit companies with an M&A scale of more than 100 million yuan, after they legally obtain 100% ownership of the target company's assets for sale or target management and control (holding 51% of the target's equity), a subsidy of no more than 5% of the M&A amount will be given, and the total subsidy for a single project will not exceed 20 million yuan.