Integrated Circuits and Dedicated Equipment

1. Development Status
In 2016, the scale of Nanjing's integrated circuit (IC) industry exceeded RMB 5 billion, ranking No.4 in Jiangsu province. There are more than 100 IC enterprises, forming a complete industrial chain that covers links such as IC design, manufacturing, and test packaging. The scale of eight enterprises such as the 55th Research Institute of CETC, Guosheng Electronics, Guobo Electronics, and SEUIC has exceeded RMB 100 million.

In 2016, Nanjing focused on key links of the IC industrial chain and actively brought in a number of large-scale major projects that can greatly drive industrial development to build the city into a national key city of the IC industry. The projects include TSMC, ZTE Photoelectron, Tacoma Semiconductor Industrial Park, Tsinghua Semiconductor Industrial Base, and Corigine enterprise-level chips. Moreover, centering on the commanding height of the IC industry's development and innovative development needs, Nanjing has set up a number of industrial innovation platforms such as Nanjing Integrated Circuit Industrial Association, Nanjing Integrated Circuit Industry Service Center (ICisC), and Industry-University-Research Integrated Development Alliance of National Demonstration Schools of Microelectronics. The city has also built Nanjing Branch of EDA Center of Chinese Academy of Sciences (EDACAS) and IC packaging and testing platforms, and established a government-industry-university-research collaborative innovation mechanism for the IC industry.

2. Development Advantages
(1) Solid Industrial Foundations
Nanjing is an important scientific and educational center, China's renowned software city, and a major electronics industry base. The scale of Nanjing’s electronics information manufacturing industry ranks No.4 in China's 15 sub-provincial cities. The main business income of its software information service industry ranks No.4 in Chinese cities. The scale and level of Nanjing’s electronics information industry rank top in China, laying a solid industrial foundation for accelerating development of the IC industry.

(2) Extensive Talent and Sci-Tech Resources
Nanjing's enormous talent and sci-tech strengths provide important support for rapid development of the IC industry. Nanjing ranks No.1 in China in terms of the number of college students per 10,000 people, No.2 in the number of post-graduates per 10,000 people, and No.3 among Chinese cities in the number of CAS and CAE academicians. It also ranks No.3 in China in the quantity of talent under the "Thousand Talent Program." In terms of IC talent cultivation, colleges and universities such as Southeast University (SEU), Nanjing University (NJU), Nanjing University of Science and Technology, and Nanjing University of Posts and Telecommunications (NUPT) produce a large number of graduates in related majors every year. SEU is a national IC talent cultivation base approved jointly by the Ministry of Education and Ministry of Science and Technology. In terms of IC scientific research, Nanjing boasts a number of R&D institutes with cutting-edge technologies in China, such as the National ASIC System Engineering Research Center in SEU, Nanjing National Laboratory of Microstructures in NJU, Nanjing University Institute of Microelectronics Design, and Institute of RF-&OE-ICs (IROI) of SEU.

3. Development Goals and Priorities
By 2020, Nanjing’s IC industry will achieve sales revenue of more than RMB 50 billion, with an average annual growth of more than 60%, forming an IC industrial chain with coordinated development of links such as manufacturing, design, packaging, and testing. Sales revenue of about RMB 30 billion will be achieved from the manufacturing link.

Nanjing will bring in and cultivate more than 10 leading enterprises whose sales revenue exceeds RMB one billion, more than 30 enterprises whose sales revenue exceeds RMB 100 million, and a number of high-level IC R&D institutes and operation centers. Moreover, Nanjing will accelerate development and growth of a number of enterprises with strengths such as high market share, great innovation abilities, and rapid development in segmented fields.

With the opportunity to build an IC industry belt along the Yangtze River in Jiangsu province, Nanjing will focus its industrial layout on the IC industry base in Nanjing Jiangbei New Area, and continuously improve the industrial agglomeration level to make the gross scale account for more than 70% of the city’s IC industry.

4. Supportive Policies
(1) Set up dedicated funds for Nanjing's IC industry.
a) For 12-inch 28-nm (or less) IC chip production projects with an investment scale of more than RMB 10 billion, provide key support such as comprehensive subsidies for plant construction and equipment purchases. Moreover, support complementary projects of the industrial chain such as design, R&D, packaging, testing, equipment, and materials required for chip production projects.

b) For Nanjing’s whole-equipment enterprises that purchase and use chips developed by local IC design enterprises in key development fields for the first time, provide a one-time subsidy at a rate of 10% of the purchase amount, with a maximum subsidy of RMB one million.

c) For Nanjing's IC design enterprises in key development fields that implement the first tape-out for engineering products that meet certain conditions, provide R&D support based on 60% of the mask manufacturing fee for the products or 30% of the first tape-out fee, with an upper limit of RMB one million.

d) For public service platforms that have been certified at the municipal level, meet Nanjing’s IC industrial layout requirements, and provide EDA tools, MPW, tests, and other services, provide such platforms with a maximum subsidy of RMB one million every year based on the effectiveness of actual services provided for various small and medium-sized enterprises. Moreover, provide specific support for equipment sharing between IC enterprises.

e) For IC design enterprises that are included in the national planning and deployment and whose annual operating income exceeds RMB 500 million or one billion for the first time, provide core teams of such enterprises with a maximum one-time reward of RMB 0.5 million or one million. For Nanjing's IC enterprises whose annual operating income exceeds RMB 5 billion or 10 billion for the first time, provide core teams of such enterprises with a maximum one-time reward of RMB 0.5 million or one million.

f) For projects with national dedicated support, provide a certain percentage of local counterpart funds.

(2) Set up an investment fund of RMB 20 billion in total for Nanjing's IC industry with an initial fund of RMB 6 billion. The fund is mainly used to support construction of investment projects in key links of the industrial chain, establish public service platforms for key industry bases, merge and reorganize key enterprises, and improve production capacity of key products. Moreover, actively take related industry investment funds offered by the state and Jiangsu province to support Nanjing's major IC industrial projects.

(3) Encourage listings, mergers, and reorganizations of IC enterprises.
Encourage various financial institutions to strengthen loan support. Encourage commercial banks to intensify M&A loan services and promote mergers and reorganizations of IC enterprises. Support development of financing guarantee institutions and lease finance companies to facilitate the provision of guarantees and leasing services for small and medium-sized IC enterprises. Encourage IC enterprises to restructure, go public, and fully utilize multi-level capital markets such as the Main-Board Market, SME Board, and Growth Enterprise Market (GEM) for listings, financing, and development. After enterprises are listed, provide staged support for them based on the listing process.

(4) Preferentially apply for the "Thousand Talent Program" for high-level IC talent.
Annually evaluate, select, and award capable people who make outstanding contributions to Nanjing's IC industry. Preferentially support high-level IC talent to apply for the national "Thousand Talent Program" and "Ten Thousand Talent Program" and "Program for High-Level Entrepreneurial and Innovative Talent Introduction" of Jiangsu province. Set up IC special projects in the application for the talent plan of "Entrepreneurship in Nanjing" and guide key areas to introduce and cultivate IC entrepreneurial talent.

Establish high-level IC talent certification criteria, provide governmental support for certified high-level IC talent (teams), and favor such talent in terms of their children's schooling, spouses' jobs, apartments, social security and residence registration, and entry and exit.

(5) Provide support for enterprises when they apply for patents and purchase intellectual property.
Authorities of Nanjing such as Nanjing Intellectual Property Administration, Nanjing Administration for Industry & Commerce, and Nanjing Municipal Copyright Bureau will intensify protection of relevant patents, IC layout design and IC products, business secrets, and software copyrights and cooperate with judiciary authorities in protecting intellectual property (IP) owners' legitimate rights. Governmental support will be provided when IC enterprises apply for Chinese and overseas patents and acquire intellectual property rights (IPRs) and when IC design enterprises purchase IP.

5. Primary Vehicles
Jiangbei New Area, Nanjing Economic and Technological Development Zone, and Jiangning Development Zone