Shanghai Satellite City Will Pay USD1.77 Million in Subsidies to Semiconductor Makers

Shanghai Satellite City Will Pay USD1.77 Million in Subsidies to Semiconductor Makers

Dou Shicong

Date: Mon, 05/07/2018 - 12:20 / source:Yicai
Shanghai Satellite City Will Pay USD1.77 Million in Subsidies to Semiconductor Makers
Shanghai Satellite City Will Pay USD1.77 Million in Subsidies to Semiconductor Makers

(Yicai Global) May 7 -- Kunshan in China’s eastern Jiangsu province recently introduced a policy to boost development of semiconductor enterprises.

The city, lying on Shanghai’s northern outskirts, will bolster project implementation, industrial agglomeration, and research and development investment, with each semiconductor firm eligible for financial subsidies of up to CNY10 million (USD1.77 million) per the policy, as state media Xinhua News Agency reported yesterday.

Kunshan will provide up to CNY10 million in subsidies to integrated circuit design companies whose registered capital tops CNY10 million and whose development direction accords with its priorities. The municipal government will offer up to CNY1 million in special funding for other integrated circuit startups with good industrialization prospects as preferential support based on technology, scale, effectiveness and other indicators.

To solve problems such as the disconnect between upstream and downstream industries and inadequate linkage between emerging sectors, Kunshan will give support of up to CNY10 million to enterprises that produce semiconductor equipment and related materials and whose investment scale exceeds CNY100 million.

The municipality will also encourage various R&D institutions, colleges and universities to work with local companies to foster talent and will assist with company  training, e.g. in staff skills and operating management. Semiconductor firms with annual R&D investment of over CNY3 million or which have won major scientific and technological awards above the provincial level will also receive financial backing and rewards.

Kunshan is one of the most important hubs of China’s electronic information sector. It boasts an industrial edge in consumer electronics, panel displays, communications and integrated circuits. The city achieved industrial output value of CNY910 billion in 2016, of which the electronic information sector made up over 50 percent.

Editor: Ben Armour

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Keywords: Kunshan, semiconductor, Financial Subsidies, IC