Shenzhen Encourages Investment in IC SectorSouth China's boomtown, Shenzhen, has recently launched policies to encourage investment in the integrated circuit sector in the coming five years.Shenzhen plans to become a major producer of electronic chips in China in the decade to come. Officials with the Shenzhen Municipal Government said a preferential treatment package has been offered to IC projects becoming operational before 2005, which involve land use, personnel, water, electricity and taxation. Companies with an investment of more than 8 billion yuan (nearly US$1 billion) in the sector, or enterprises producing IC with a line width of smaller than 0.25 micron, would be eligible for the preferential treatment. Shenzhen is planning an IC industrial park, which covers 3 to 3.5 square km in its first stage, said the officials. Enterprises deemed as IC producers by the local government would be exempt from the levies imposed on transfer of land-use rights, supporting facilities in urban construction and land development, they said. Subsidies would be offered for water and electricity used in production by those enterprises which start production before 2005, and to loans used for IC projects before 2003. Those enterprises would have access to commercial housing units at discounted prices for their senior managerial and technical personnel, who would be given permanent residences for themselves and their families if discounted house prices are not available. They would also be exempt from levies imposed on non-permanent people applying for a permanent residence. There are a number of IC manufacturing enterprises in Shenzhen, including Guowei Electronics Co, which recently won the bid for the research and development of digital television chips in China's national digital TV development program. China encourages investment in IC research, development and production, and is trying to catch up with developed countries in this field. |
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