(Yicai Global) Aug. 12 -- The integrated circuit industry in Lingang Special Area, a special economic space included in Shanghai’s free trade zone, will exceed CNY100 billion (USD14.8 billion) by 2025, according to a new action plan released today.

The plan is to turn Lingang into an innovative development hub for the IC industry that is globally influential and competitive on a par with California’s Silicon Valley, Hsinchu in Taiwan, and Gyeonggi-do in South Korea.

Shanghai’s IC industry, whose development has been prioritized by the city, was worth CNY250 billion (USD37 billion) last year, up 20 percent from 2020 and constituting 25 percent of China’s total.

Over the next three years, Lingang Special Area will create five globally leading chipmakers, five equipment material firms with annual revenue of more than CNY2 billion each, more than 10 startup unicorns, and over 10 listed businesses, said Wu Xiaohua, deputy-secretary of the area’s Party working committee.

The blueprint also proposes that by 2025, more than eight world-class laboratories will be introduced, with no less than 100 firms supported to set up research and developments centers, and over 1,000 high-tech enterprises.

The plan requires promoting breakthroughs in core technologies, accelerating the development of chip design, and improving chip manufacturing ability.

At the same time, it calls for accelerating the convergence of equipment material, strengthening the localized production ability of key materials, and improving the layout of high-end semiconductor packaging and testing.

The IC industry, which has garnered the most investment of all sectors in Lingang to date, biomedicine, artificial intelligence, and civil aviation make up the special area’s four core sectors.

Wu said that Lingang will explore chip trade innovation, supporting IC firms in the area to trade offshore trade and supply chain finance business, so as to build an ecosystem conducive to the development of the industry through a series of safeguard measures.

The special area will nurture high-level native and overseas talent and outstanding young talent, he added.

Meanwhile, investment agreements on 24 projects, including 13 industrial projects covering IC, AI, high-end equipment manufacturing and other cutting-edge fields with a total contract value of CNY12.6 billion (USD1.9 billion), were penned at the Lingang third anniversary ceremony today.

Editors: Shi Yi, Peter Thomas