Sunday, September 19, 2010

Semiconductor India vied with New Deal

The Chinese government is encouraging the development of the semiconductor industry to wait for the new No. 18 paper comes at first to the Indian government issued its first investment in the semiconductor industry awards program, which makes China and India formed in the semiconductor field a competitive situation, and make new 18 documents will be announced once again become the industry focus.

Transfer of industry experience, "the showstopper"

Recently, the focus of competition in the Indian IT transfer to the semiconductor industry.

Fuse is the Government of India on February 22 announced the promulgation of the first investment in the semiconductor industry award programs: the special economic zones in India and invest in the semiconductor industry, 10 years can enjoy a discount of 20% of the cost of subsidies, and enjoy other incentives. At the SAR outside the semiconductor industry in the next 10 years, India will provide 25% of the cost of benefits.

Although the details of this new deal should be announced later, but their Chinese counterparts have been tantamount to a "blockbuster."

You know, after being the focus of the global semiconductor manufacturing shift to China, has been put into operation more than 20 IC production line "in short supply." India's move is tantamount to a Cheng Yaojin popped half way, it stopped at those who have left or plan to rush ahead of Chinese investors, said: Come to me, you will get an unexpected surprise.

"Spoiler" effect has been seen. According to "Time Ventures," Chairman Ma Kai Yuan introduced, they are to invest in a 6-inch wafer overseas acquisitions have been very successful in a number of bidders in the "considerable advantage", can not think of a crucial moment in the negotiations, "a The bid team from India frequently visit Silicon Valley, has repeatedly expressed desire to buy, bid prices are rising. "

Seriousness of the problem does not stop there. According to reports, "In the past few months, several major semiconductor chip giant burst of enthusiasm for the Indian market, AMD, Microsoft has decided to shot, and more eager to potential investors." Indian media is excited to announced that Samsung, fly Sika Er, Motorola, Intel, Infineon, STMicroelectronics and Toshiba are India, "potential investors."

Indeed, China has never placed in the eyes of India's hardware. People who do not know, "India's software and hardware in China?" Moreover, "China's advantage of the hardware to India, China, India is far greater than the advantages of software." I interviewed three years ago to India, away including Delhi, Mumbai, Bangalore, Haidelama including 6 cities, one of the deepest impression is its hardware manufacturing and infrastructure, as there backward. Bangalore annual exhibition, the scale and impact of its kind in the country show called the most, which is hard to find IT hardware manufacturers figure, very few of the hardware that participating companies are also hired a small lattice Booth , by sending leaflets to attract the audience, accompanied by friends, given the evaluation of the mission hardware in India, "at least 10 years behind than China." It now seems that this ambition is not in our neighborhood, under the Sino-Indian IT "fully competing with" the advent of the era ahead, "When we pointed at the time of its software, it has been in the wars in our hardware up." Also, a shot on-line hardware industry in the heart - the semiconductor industry.

Chinese counterparts very anxious

India Semiconductor introduced the New Deal, the Chinese semiconductor industry Flanagan touched sensitive nerves - industrial policy, the industry complained that many of the Chinese government: a policy of preferential margins not complain; two complain is not strong operational policy, most companies have no benefits; three delays introduction of the new policy grievances. "If the state do not put the New Deal, our association will represent the company to negotiate with Beijing." Shanghai Integrated Circuit Association, said the Secretary-General Jiang Shougui mine.

In fact, the problem with the development point of view, any policy of what is unavoidable shortcomings. Introduced in 2000 to "encourage the development of software and IC industry, a number of policy" (that is, the State Council document No. 18), read from the conditions at that time, had the greatest extent reflects the Government's support for the semiconductor industry, is in this document Encouraged by China's semiconductor industry have had from 2000 to 2005 a rapid pace. But as a phased policy, on the 18th document also some loosely, for example, it provided tax rebate is based on the conditions (tax = VAT / sales) to inspect, while most of China's chip companies as profits lower tax burden is difficult to document in the prescribed 3%, thus not enjoy the benefits of preferential policies. In addition, it imposed 17% import tariff chip, leaving chip makers practice in the Mainland to enjoy 14% tax rebate on, this one has been criticized by the United States that required with the WTO "national treatment" contrary to. Although the Chinese Ministry of Commerce said the United States confused the term "tax" and "tax" concept, "is based on the wrong logic in accordance with the error out of a wrong conclusion," but after the two sides reached a memorandum of understanding is that China canceled preferential tax measures, the U.S. is to withdraw lawsuits. April 2004, 18, two key documents in support of measures helpless halt.

Ministry of Information Industry Software and Integrated Circuit Promotion Center Qiushan Qin, deputy director, said recently in an interview that "the state attaches great importance to the 18th file in solving domestic problems in the chip industry, a more complete document on the 18th the new development has long been brewing into. "

In fact, the new contents of the file 18 already on the Internet travels uproar, such as "five five half-free" policy, that is, the annual profit from the semiconductor industry began, the first 1 to 5-year exemption from income tax, 6 to 10 years of tax law can be stretched to 2020; addition, there are special funds of the upcoming news. Many indications that national support for the semiconductor industry will only increase, not decrease. "India's preferential rate may not catch up with China," said Xue-Ming Yang semiconductor experts.

The problem now is that the domestic semiconductor manufacturers waiting for the "new document 18" in the end when baked? Earlier, the previous news that the new document will be No. 18 issued by the end of 2005, and later changed to 2006, from the beginning to the end of the year is expected to delay enactment, have passed more than two months have passed in 2007, the New Deal far not appeared, Querang India grabbed the first prize in the semiconductor New Deal, which took so many of China's investment in the eye originally.

The first quarter is expected to introduce the New Deal?

The introduction of the New Deal on China's semiconductor time, the reporter heard the latest version is "expected to put the first quarter of 2007." This is the January 18 meeting in Shanghai Pudong "global semiconductor industry summit in China", the Ministry of Information Industry Software and Integrated Circuit Promotion Center Qiushan Qin, deputy director of the information disclosed in the lecture.

Qiushan Qin said, this will be the State Development and Reform Commission promulgated the "Regulations encourage the semiconductor industry," and 18, there are several different documents, one will not refund value-added tax, instead of using the special fund to support policies to increase support, while exports Some tax rebate tax preferential policies still; second is the "five five half-free," while 18 documents only three years after the first two years of half-free; The third difference is reflected in the New Deal is a comprehensive support policy including R & D funds, tax incentives, training, income distribution and import and export, and finance. "The new policy document for the original 18 is not a simple replacement, but an extension of its foundation, the state '11 5' on the integrated circuit during an integrated and comprehensive industrial policy."

As to why the delay in introduction of the New Deal, the source explained: "One important reason is to rise to the legal aspects of the New Deal," Development and Reform Commission is responsible for this policy, the Ministry of Finance, Ministry of Information Industry, Ministry of Commerce, State Administration of Taxation, Customs Department, the need for policy content of the second instance, third instance, "of which there are many problems to solve," said Xu Xiatian Secretary-General of China Semiconductor Association. "Efforts to support the key size is not the key to compliance with the rules. Must be permitted in the rules within the support," senior analyst at Analysys International is also the case of Zhao Yazhou.

Qiu Shanqin in an interview fully affirmed the "State support" in the semiconductor industry's important role: whether the United States, Europe or Japan, Korea, the semiconductor industry does not rely on government support without which develops, not a single government on this important industry faire policy. Even if the same country, in the semiconductor industry will develop at different stages of development of different support policies. The Chinese government of course, aware of the article, "China's chip manufacturing business in the second half of this year to usher in a new policy of good times."

Edit Comment: Shangju Do not panic

Over the past few years, IT often say one sentence: "Now is not 澶ч奔鍚冨皬楸? but the fast fish eat slow fish." Means that the IT industry has been the ratio of the size of the period, and enter into the stage than the speed.

Words used in the current Sino-Indian competition in the semiconductor industry should also be very suitable.

In the software industry, we have half a beat too slow, this half a beat for us to trace the 10 years of fear; in the semiconductor industry, we have a little bit faster, once it was a little proud, but now, India is the first to introduce a more attractive preferential policies, which really let us unprepared. So industry has a little afraid, afraid of being the first to India again. This is actually a good thing, that we are a strong sense of competition.

However, it should be worth not to panic the moment, the new document has been planned for a long time on the 18th, and now also can, according to the Indian it better and more advanced, and investors will have a wait and see and compare the process, as long as the government well-thought- sometimes even more striking advantage.


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