What Does an Integrated Circuit Manufacturer Do?

An integrated circuit enterprise refers to an organization with independent legal personality established in China (excluding Hong Kong, Macau, and Taiwan) that engages in the manufacture, packaging, and testing of integrated circuit chips and the production of 6-inch or more silicon single crystal materials. Excluding integrated circuit design companies.

Integrated Circuit Enterprise

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An integrated circuit enterprise refers to an integrated circuit company established in China (excluding Hong Kong, Macau, and Taiwan) in accordance with law.

In order to encourage the development of integrated circuit industry enterprises, China implements a recognition system for integrated circuit enterprises and enjoys relevant preferential policies after certification.

IC qualification requirements

There are 4 items:

1. Lawful establishment

Benefits enjoyed by manufacturing companies

Import preferences: the introduction of integrated circuit technology and complete sets of production equipment, special imported integrated circuit special equipment and instruments, in addition to the "list of imported goods that are not exempt from foreign investment projects" and "the list of imported goods that are not exempt from domestic investment projects" Except for commodities, it is exempt from customs duties and import value-added tax.

1. It is a legal entity established in accordance with the law to engage in the manufacture, packaging, and testing of integrated circuit chips and the production of silicon single crystal materials of 6 inches or more;

2. It has basic conditions such as production and operation sites, software and hardware facilities, and personnel that are compatible with the production of integrated circuit products. Its production process conforms to the basic processes and management specifications for integrated circuit product production, and it has the means and capabilities to ensure product production;

3. The sales revenue of self-produced (including foundry) integrated circuit products accounts for more than 60% of the company's total revenue for that year (except for new enterprises);

4. The competent tax authority of the enterprise determines that the enterprise has no malicious acts such as tax arrears or tax fraud.

On August 14, 2007, the National Development and Reform Commission of China announced the first batch of IC application encouragement companies. A total of 94 IC manufacturers, packaging and testing manufacturers will apply preferential policies such as taxation and customs clearance.