Semiconductor New Deal ignores design companies or become ribs

Although the new policy of China's semiconductor industry in the review stage has become the focus of attention in the industry, some semiconductor companies have not shown more expectations. Instead, they even complained.

"To tell the truth, we are worried that the new policy will still be a chicken. If we take the preferential measures of 'No. 18 Document' ("Several Policies for Encouraging the Development of the Software Industry and the Integrated Circuit Industry"), we can only see that there is no way to enjoy it. Most of the benefits have been enjoyed by semiconductor manufacturers." The marketing manager of a semiconductor design company in Shanghai said with dissatisfaction with the "First Financial Daily".

Design companies are ignored?

There are 12 articles on the "Integrated Circuit Industry Policy" in "No. 18 Document". The most important of these are Articles 41, 44 and 47. Article 41 stipulates the policy that the value-added tax of the semiconductor enterprise is refunded immediately (the initial part of which is more than 6% of the actual tax burden), while the latter two stipulate that the semiconductor manufacturing enterprises are exempt from customs duties and import value-added tax when importing equipment and raw materials.

In the eyes of industry insiders, the above policy directly laid the special position of "No. 18 Document" in the history of China's semiconductor industry development. In the past six years, China's semiconductor industry has grown rapidly at a much higher rate than the world.

“However, this is basically a custom-made clause for production companies, which is not available in the actual operation of the design enterprise,” said the source.
At present, the scale of chip design companies in China is very small, and the top 10 revenues are not as good as the 10th in the world. Moreover, due to the low-end design, the added value of products cannot be improved, and most enterprises do not exceed the actual tax burden of 3%. Therefore, for semiconductor design companies, the effect of “No. 18 Document” is not large. He added that Articles 44 and 47 are basically irrelevant to design companies because they are related to the purchase of equipment by enterprises.

The person said that according to the "No. 18 Document" policy, the company did not realize actual sales and did not enjoy the actual discount.

TD-SCDMA standard China RF chip research and development side - Dingxin Semiconductor has a similar flaw. Zheng Jun, the company's executive vice president, said that after the "No. 18 document", the state immediately launched a special fund policy (the "Interim Measures for the Management of Special Funds for Integrated Circuit Industry Research and Development"), but Dingxin did not receive financial support.

Qiu Shanqin, deputy director of the Software and IC Promotion Center of the Ministry of Information Industry and chairman of the China Integrated Circuit IP Industry Strategic Alliance, told the China Business News last week that the current special fund is only applicable to those taxpayers.

“It is difficult to design a company to make a profit. I hope that the new policy will not be subject to taxation and other conditions. Different treatments will be given to these core links, and specific support will be given. The same terms cannot be fully applied to manufacturing companies.” Zheng Jun said.

A spokesperson for a foundry in Shanghai also complained. He revealed that due to the small capacity of the company and the fact that the foundry products are basically low-end, the value-added tax is not obvious relative to the investment in equipment.

A consultant said that the previous "No. 18" had a greater effect on foreign-invested companies because they were basically just factories.

Financing channel

In addition to taxation, creating good financing channels is another urgent expectation for semiconductor companies to adopt new policies.

As far as financing channels are concerned, there is no difference between the semiconductor industry and other industries. However, due to the capital intensiveness and high risk of the industry, domestic banks and private equity funds are extremely cautious.

Moreover, in the face of manufacturing and design companies, bank loans are also treated differently. Relative to the hundreds of millions of dollars, more than one billion US dollars of manufacturing enterprises, design enterprises fixed assets investment can not match, lack of mortgage chips, it is difficult to obtain bank loans.

"I think that the value of intangible assets such as enterprise core technology should be reasonably evaluated, otherwise it is really unfair to design companies." Zheng Jun said.

Open IPOs abroad are naturally an important choice for semiconductor companies. However, because the global influence of mainland semiconductor companies is not as good as that of the United States, South Korea, Taiwan, etc., regardless of whether they are listed in the US or listed in Hong Kong, the financing quota and subsequent stock market effects are relatively more than the school, because of Sarbanes. The implementation of the bill, the cost of going public in the United States is much larger than before. Therefore, although SMIC, Zhongxingwei and Zhuhai Actions have successfully landed, in general, this channel of scenery is still a sour grape of many semiconductor companies in China.

The fierceness of China's capital market has begun to bring the attention of semiconductor companies back to the mainland. However, one of the conditions for the current listing of the Main Board, that is, the conditions for profit for three consecutive years, is enough to temporarily shut down most companies. Take manufacturing companies as an example. Even SMIC, although profitable in 2004, currently has only two 8-inch factories in Shanghai for two consecutive years.

Chen Kai, CEO of Dingxin, told reporters not long ago that if it goes public, the company will not ignore the local capital market, but he said that at least the company still does not meet the above standards.

The new policy focuses on industry challenges

Jiang Shoulei, secretary general of the Shanghai IC Industry Association, admits that the above situation is indeed a practical problem, especially the VAT link. Many enterprises actually do not benefit much. He revealed that the new policy will be treated in a targeted manner.

Professor Xue Zi, the deputy secretary general of the association, told reporters last week that the new policy will be wider and wider than the original No. 18 document. The various regulations in the original document will be continued except for the cancellation of the VAT rules. Moreover, in the new policy, financing and personnel training will attract the attention of the industry. In addition, he added that the new policy also emphasizes the value of equipment and materials, which was not available in the past.

Yu Ning, director of SMIC's investor relations department, revealed that according to his understanding, the function of the GEM financing platform is expected to be strengthened in the new policy, and the concerns of design companies are expected to be resolved because the evaluation of intangible assets can be made by investors. Come to fix. “In addition, with the merger of the two taxes, domestic semiconductor companies will also get some positive effects.”