Chinese semiconductor industry

up to 30 million yuan! Beijing rewards and subsidizes the first round of chip production, EDA procurement, and auto chip insurance

On February 17 , the Beijing Municipal Bureau of Economy and Information Technology and the Beijing Municipal Bureau of Finance released the " 2023 Guidelines for the Implementation of Beijing 's High-tech Industry Development Funds (First Batch)" for comments, and the comments were solicited on February 21 . due.

The purpose of this document is to clarify the areas and directions of annual key support for Beijing's high-tech industry development funds, increase financial support for inclusive industries, and improve the efficiency of capital cashing. The first batch of key support directions for high-tech funds in 2023, including the first round of silicon chip rewards for integrated circuit design products, EDA procurement rewards for integrated circuit companies, insurance subsidies for automotive chips, etc.

According to the document, in the direction of rewarding the first round of integrated circuits, high-tech funds will focus on supporting integrated circuit design companies to carry out multi-project wafers ( MPW ) or engineering products for the first round of wafers (full mask). A certain percentage of film costs will be rewarded, and the maximum reward amount for a single enterprise shall not exceed 30 million yuan.

In the direction of EDA procurement incentives for integrated circuit companies, high-end funds will support integrated circuit companies conducting research and development in Beijing to purchase qualified EDA design tool software (including software upgrade fees), and rewards will be given based on the fact that the actual procurement costs do not exceed 50% . The maximum reward amount for a single enterprise shall not exceed 5 million yuan.

In the direction of insurance subsidies for high-end innovative products, subsidy will be given to eligible insured companies in the fields of automotive chips, intelligent connected vehicles, etc. at a rate not exceeding 50 % of the relevant insurance premiums. Among them, the maximum subsidy amount for a single insurance policy for auto chips shall not exceed 5 million yuan, and the maximum annual subsidy amount for a single enterprise shall not exceed 10 million yuan. It is worth noting that, according to the document, in addition to applying to automotive chip companies, this article also covers upstream and downstream companies (parts and vehicle companies) in the industrial chain that purchase, use, and verify related automotive chips.

In terms of application conditions and requirements, enterprises applying for high-tech funds in any direction must be registered in Beijing, have independent legal personality and have no serious dishonesty records in the past three years. In principle, the same company can only apply for one direction, and companies that apply for the first round of integrated circuit production, EDA procurement incentives, and commercial insurance subsidies for automotive chips must be recommended by the economic and information authorities in their districts.

In 2023 , high-tech funds will adopt the "exposure declaration method", and the declaration time for this batch is from the date of publication to April 15 , 2023 . Eligible reporting units can log in to the "Beijing Tongqiu Service Edition APP- Integrated Application Platform - Beijing Municipal Bureau of Economy and Information Technology and Beijing Municipal Bureau of Finance regarding the release of the " 2023 Implementation Guidelines for Beijing's High-tech Industry Development Funds (First Batch) "Notice - Immediate Declaration" entry to fill in, and submit relevant information and materials for declaration according to the filling guidelines.

A western commentary that is a bit sobering about China's semi industry and govt funding
1. Too much of the Investments were into factories (buying foreign equitment) rather than fundamental science
2. Corruption led to 10s of billions wasted
3. Many of current achievements are dependent on foreign input and/or have terrible yields

daifo said:

A western commentary that is a bit sobering about China's semi industry and govt funding
1. Too much of the Investments were into factories (buying foreign equitment) rather than fundamental science
2. Corruption led to 10s of billions wasted
3. Many of current achievements are dependent on foreign input and/or have terrible yields

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He has no idea what he is talking about. He does not know what the fundamental science is, what the constraints are, etc. Lots of big claims, scant evidence.

Elliot Ji is a Ph.D. Candidate in international politics at Princeton University.

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daifo said:

A western commentary that is a bit sobering about China's semi industry and govt funding
1. Too much of the Investments were into factories (buying foreign equitment) rather than fundamental science
2. Corruption led to 10s of billions wasted
3. Many of current achievements are dependent on foreign input and/or have terrible yields

Please, Log in or Register to view URLs content!

Click to expand...

Anyone that says China has gotten too little return for their investment into semiconductor industry clearly has no idea what they are talking about. I just posted a link where it shows 6 years is required from R&D to mass production for certain semi production materials. And people are triumphing over China not seeing result over 4 years?

daifo said:

A western commentary that is a bit sobering about China's semi industry and govt funding
1. Too much of the Investments were into factories (buying foreign equitment) rather than fundamental science
2. Corruption led to 10s of billions wasted
3. Many of current achievements are dependent on foreign input and/or have terrible yields

Please, Log in or Register to view URLs content!

Click to expand...

War on the Rocks should stick to their domain and not expand to unrelated fields.

Their domain:

War on the Rocks is a platform for analysis and debate on strategy, defense, and foreign affairs. It features articles and podcasts produced by an array of writers with deep experience in these matters: top notch scholars who study war, those who have served or worked in war zones, and more than a few who have done it all.

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Among our regular contributors are people who have worked on every continent in the world. They have commanded ships, bargained with militias, led patrols, managed alliances, called for fires, and negotiated treaties. They include former diplomats, officers, NCOs, intelligence professionals, and some of the most reputable scholars in the world studying war and international politics. Our contributors include citizens of countries from around the world, members of all political parties and none. But they all converge on that one guiding principle for our project: experience.

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daifo said:

A western commentary that is a bit sobering about China's semi industry and govt funding
1. Too much of the Investments were into factories (buying foreign equitment) rather than fundamental science
2. Corruption led to 10s of billions wasted
3. Many of current achievements are dependent on foreign input and/or have terrible yields

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Why the hell would they sanction Chinese firms if they were going no where?

tacoburger said:

The new export controls by the Netherlands and Japan might actually be a good thing in the long run.

Firstly it even further cements the idea of total domestic supply for the entire industry, no foreign supplier can be trusted. Secondly, this gives ammo for Beijing to hit back, and nobody can really complain about IP theft, massive subsidies, declining market share or outright total bans if they started the fight first.

Thirdly, the loss of the sales from the chinese market will massively impact this companies, especially Japanese ones, they don't have the money to subsidize the billions in loss revenue. And lastly, if China does manage to come up with a viable domestic alternative within 1-2 years, this will signal to other companies and countries that this kind of sanctions and export controls won't work, all they do is make China run even faster to catch up and recreate the technology.

Of course, I hope that the short term effects aren't that disruptive and that domestic equipment and material suppliers can catch up fast enough.

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"The new export controls by the Netherlands and Japan might actually be a good thing in the long run."

Yes, yes, and yes. I'm the opposite of a chip SME -- on a good day, I might understand 0.1 percent of the technical aspects discussed here -- but the way I look at it, the more sanctions, the better. I think of the sanctions as a domineering fitness trainer, whipping the Chinese semiconductor manufacturing sector into shape. Whenever new sanctions are announced, I'm pleased, because it's a sign that the sector is going to be adding another plate to the bar (so to speak). Conversely, I'm disappointed by news that sanctions are being withheld or relaxed or evaded, because that's a chance for the sector to slack off.

tphuang said:

Anyone that says China has gotten too little return for their investment into semiconductor industry clearly has no idea what they are talking about. I just posted a link where it shows 6 years is required from R&D to mass production for certain semi production materials. And people are triumphing over China not seeing result over 4 years?

Click to expand...

I like how he brought up fraud from 2003 on the order of 100 million (0.1 billion) RMB yet ignored the Enron scandal ($50 billion in nonexistent assets), , Theranos fraud ($10 billion fake tech), ), without building more than a few (<10k) vehicles over years, etc.

FairAndUnbiased said:

I like how he brought up fraud from 2003 on the order of 100 million (0.1 billion) RMB yet ignored the Enron scandal ($50 billion in nonexistent assets),

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, Theranos fraud ($10 billion fake tech),

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),

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without building more than a few (<10k) vehicles over years, etc.

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Measuring my imaginary perfect over your imaginary worst is a very good sign that someone is currently experiencing a copium high.

daifo said:

A western commentary that is a bit sobering about China's semi industry and govt funding
1. Too much of the Investments were into factories (buying foreign equitment) rather than fundamental science
2. Corruption led to 10s of billions wasted
3. Many of current achievements are dependent on foreign input and/or have terrible yields

Please, Log in or Register to view URLs content!

Click to expand...

I think at this point，it is preferable to China that the outside world think or portray Chinese semiconductor development in this way. It is clear that Chinese semiconductor companies wants to maintain a low profile lately，don't want attract unnecessary attention from the outside world