Shenzhen Bao'an District recently released the "Implementation Plan for the Cultivation and Development of Semiconductor and Integrated Circuit Industry Clusters in Bao'an District (2023-2025)" (hereinafter referred to as the "Implementation Plan"), which clearly states that by 2025, the output value will exceed 120 billion yuan, the added value will exceed 28 billion yuan, and 5 or more enterprises with an output value of over 2 billion yuan, 10 or more enterprises with an output value of over 1 billion yuan will be cultivated. A number of "specialized, innovative" small and medium-sized enterprises and high-quality new and cutting-edge listed enterprises will emerge.

The Implementation Plan points out that at present, China attaches unprecedented importance to the integrated circuit industry, and the country continues to increase its support for the integrated circuit industry. Shenzhen is serving as the main position of Guangdong Province to create the third pole of the national integrated circuit industry, creating a significant window of opportunity for Bao'an to cultivate and develop semiconductor and integrated circuit industry clusters. Bao'an has a strong foundation in the electronic information industry, with a cluster of leading terminal enterprises, and strong traction for downstream applications. Integrated circuit enterprises in the region can closely follow the needs of emerging market customers such as 5G, 8K, artificial intelligence, autonomous driving, the Internet of Things, and cloud computing, and quickly seize emerging market opportunities together with upstream and downstream industries in the industrial chain.

According to the plan, by 2025, the output value of the region will exceed 120 billion yuan; The localization level of the industrial chain has been further improved, and the supporting and collaborative capabilities of the local industrial chain have been significantly enhanced; The industrial agglomeration effect is prominent, and an industrial agglomeration highland has been built with Yanluo Advanced Manufacturing Industrial Park and Shiyan Advanced Manufacturing Industrial Park as the manufacturing core, and Bao'an Central District, Dachanwan, Tiezishan District, and Airport District as the design and distribution core areas.

Six key development directions

Advanced Manufacturing: To meet the production and manufacturing needs of automotive chips, cultivate and expand local manufacturing enterprises, and build a major manufacturing town for automotive chips in China. Actively accelerate the construction of production lines such as the China Resources Microelectronics Project and the Heavy Investment Tianke Project. Support the settlement of major semiconductor and integrated circuit manufacturing projects representing new development directions, and guide state-owned industrial groups and social capital to make equity investment in the projects. Encourage the transformation and upgrading of existing integrated circuit production lines.

Third Generation Semiconductor: Taking the opportunity of reinvesting the Tianke project, aiming at the huge market space of the third generation semiconductor under the national "dual carbon" policy, targeting emerging application markets such as 5G communication, new energy vehicles, intelligent terminals, and vigorously introducing technologically leading third generation semiconductor enterprises. Guide enterprises to participate in the formulation of technical standards for key links, seize the commanding heights of the industry, and enhance product market dominance and discourse power. Accelerate the application of product validation, encourage enterprises to promote the use of compound semiconductor products, and improve the competitiveness of systems and complete machine products.

Advanced packaging and testing: To meet the needs of Shenzhen integrated circuit design enterprises, actively introduce the production lines of domestic leading packaging and testing enterprises, achieve a closed-loop local industrial chain, shorten the R&D and production cycle of enterprises, and improve the overall efficiency of the industrial chain. Increase support and cultivation efforts for sealing and testing enterprises in the region, and support enterprises to upgrade and transform existing production line resources in line with market demand. To expand and strengthen integrated circuit enterprises' own packaging plants, and guide local enterprises to achieve rapid expansion through business mergers and acquisitions, capital increase, and production expansion.

Material and equipment supporting: Implement the special project of autonomous research, encourage the equipment and material enterprises in the area to transform and upgrade to semiconductor level packaging and testing equipment and materials products, actively attract leading backbone enterprises in the subdivided field, and create a highland for research and development of packaging and testing equipment and materials.

High-end chips: Use application advantages to drive technological breakthroughs, face trillion-level emerging market opportunities such as intelligent networked vehicles and smart energy, actively introduce leading backbone enterprises in the industry, accelerate domestic substitution and technological upgrading, vigorously support high-quality semiconductor enterprises in the region to pass vehicle specification level certification, and prioritize the introduction of complete machine supply chains.

Distribution services: Actively promote the construction of an international core creation port, introduce world-renowned semiconductor and electronic component agents and distributors, establish a customs, tax, financing, foreign exchange, and other policy systems for semiconductor and electronic component distribution and settlement, and create the most centralized, dynamic, and lowest transaction cost semiconductor and electronic component distribution center in the Asia Pacific region. Gather application research and development centers of the world's top semiconductor manufacturers to carry out business such as scheme design, talent training, application research and development, exhibition and promotion, and create a globally influential semiconductor application research and development ecosystem with highly concentrated industrial chains and efficient supply chain collaboration.

Spatial layout planning "2+4" 100 billion level industrial pattern

"2" refers to two major integrated circuit manufacturing parks, namely Yanluo Advanced Manufacturing Park and Shiyan Advanced Manufacturing Park. Yanluo Advanced Manufacturing Industrial Park aims at the hard core links of the industrial chain such as manufacturing, packaging and testing, equipment, and materials, striving to build a world-class advanced manufacturing base for automotive semiconductors, an advanced packaging and testing base in the Greater Bay Area of Guangdong, Hong Kong, and Macao, and a high-end cluster of semiconductor equipment and materials. The Shiyan Advanced Manufacturing Industrial Park aims at the third generation semiconductor industry chain, actively introducing key enterprises, and creating a cluster highland for the third generation semiconductor power device industry.

"4" refers to four integrated circuit design, software, and trading parks, namely, Bao'an Central District, Dachanwan District, Tiezishan District, and Airport District. These four areas focus on chip design, application research and development, and trading links, and strive to create a vehicle level chip design innovation base and a global semiconductor application research and development cluster.

At the same time, the Implementation Plan proposes to implement the "semiconductor and integrated circuit industry cluster chain length system"; Increase the support of regional financial funds for the semiconductor and integrated circuit industry; Encourage and guide various financial institutions in the region to increase credit support for semiconductor and integrated circuit enterprises; Introduce a group of high-level professionals in the field of semiconductor and integrated circuits; Support integrated circuit manufacturing enterprises to form regional industrial clusters and promote a series of "hard measures" such as centralized pollution control.

     In addition, according to the Implementation Plan, in 2021, the overall annual output value of the integrated circuit industry in Bao'an District will be about 81.5 billion yuan, with an added value of 19.2 billion yuan. The development of various industrial chains such as design, manufacturing, testing, equipment, and materials is relatively balanced, and the industrial ecology is constantly improving. The technological level of enterprises is continuously improving, especially in the field of equipment. Electronic information manufacturing equipment enterprises such as Advanced Semiconductor, Jintuo Shares, and Standard Spectrum Semiconductor are actively transitioning to semiconductor grade equipment. Major projects have been launched one after another, steadily promoting the implementation of the 12 inch integrated circuit production line project in China Resources Micro-Dawan District, the Liding Semiconductor high-end integrated circuit carrier board and advanced packaging base project, the reinvested Tianke Shenzhen third generation semiconductor project, and the creative storage integrated circuit industry base project.

Vigorously award or subsidize policies to promote the development of semiconductor and integrated circuit industries

In order to focus on the agglomeration and innovative development of the semiconductor and integrated circuit industries, Bao'an District released the "Several Measures for Promoting the Development of the Semiconductor and Integrated Circuit Industry in Bao'an District of Shenzhen City (Draft for Comments)" (hereinafter referred to as the "Draft for Comments") in mid January this year, specifying that certain rewards or subsidies should be given to relevant industrial units and individuals.

It is reported that the "Draft for Comments" is applicable to integrated circuit design, manufacturing, packaging and testing, equipment, materials, distribution enterprises, or enterprises, institutions, or organizations that provide relevant integrated circuit industry services. This measure focuses on supporting chip designs such as high-end general-purpose chips, special-purpose chips, and core chips; Silicon based integrated circuit manufacturing; Manufacturing of high-end electronic components; Advanced packaging and testing technologies such as wafer level packaging, three-dimensional packaging, and chiplets; Development and application of EDA tools and key IP core technologies; Production of advanced equipment and key components such as photolithography, etching, ion implantation, deposition, and testing equipment; And the R&D and industrialization of core semiconductor materials.

Improve the core competitiveness of manufacturing and testing

According to the Draft for Comments, 10% of the fixed assets investment (excluding land price) will be given to the key semiconductor and integrated circuit projects determined by experts, and the maximum subsidy for each project will not exceed 20 million yuan.

Equipment and material project support. Vigorously cultivate and introduce semiconductor and integrated circuit equipment and materials enterprises, and carry out research, development, and industrialization of core equipment, components, and key materials. For the first set of key equipment, components, and materials that enter the supply chain of key integrated circuit manufacturing enterprises and receive municipal awards, supporting support will be provided at 20% of the municipal subsidy amount, with a maximum of 6 million yuan.

Encourage inter enterprise verification services. Encourage integrated circuit manufacturing enterprises to provide verification services for the first set of equipment and the first batch of new materials for municipal and district equipment and material enterprises. For the verified equipment and materials listed in the relevant promotion catalogs of the Ministry of Industry and Information Technology of the People's Republic of China, Guangdong Province, and Shenzhen City, a subsidy of no more than 1 million yuan (equipment type) and 500000 yuan (material type) will be given to the supplier of the verification based on 20% of the price of the verified equipment or materials.

Promote key technology breakthroughs in design

The Draft explicitly encourages enterprises to carry out integrated circuit design, chip verification, and EDA tool software research and development, further promoting the formation of a complete chip manufacturing closed-loop.

Intellectual property support: Support integrated circuit enterprises to purchase IP and EDA tools for integrated circuit research and development. For enterprises purchasing IP, purchasing or leasing domestic EDA tools, and obtaining municipal subsidies, supporting support will be provided at the rate of 20% of the municipal subsidy amount. For those who purchase or lease other EDA tools, package design tools, and software, a subsidy of 30% of the actual expenses will be given, with a maximum of 1 million yuan per enterprise per year. Support enterprises to conduct streaming verification. For integrated circuit enterprises conducting multi-project wafer wafer (MPW) chip verification, a subsidy of 40% of the initial chip cost (including IP authorization or purchase, mask fabrication, and chip cost) will be provided, with a maximum of 8 million yuan per enterprise. For enterprises that have completed full mask engineering product lamination for the first time, a subsidy of 50% of the lamination cost will be provided, with a maximum of 10 million yuan per enterprise. Accelerate the research of EDA core technology. For enterprises engaged in the research and development of integrated circuit EDA tool software such as advanced process, next-generation intelligence, and ultra-low power consumption, a subsidy of 20% of the EDA research and development expenses will be provided, with a maximum of 20 million yuan per enterprise.

Build a high-quality talent guarantee system

At the same time, the "Draft for Comments" proposes to strengthen the motivation of the core team. For newly introduced integrated circuit design enterprises with annual operating revenue exceeding 200 million yuan for the first time, the proportion of 2 ‰ of the part exceeding 200 million yuan shall be calculated; For newly introduced integrated circuit manufacturing enterprises with annual industrial output value exceeding 1 billion yuan for the first time, a one-time reward will be given to the core team of the enterprise at a ratio of 1 ‰ of the part exceeding 1 billion yuan, with a maximum of 3 million yuan per enterprise.

For existing integrated circuit design enterprises with annual operating revenue exceeding 500 million yuan, 1 billion yuan, and 2 billion yuan for the first time, the proportion of 2 ‰ of the part exceeding 500 million yuan, 1 billion yuan, and 2 billion yuan shall be calculated; For existing integrated circuit manufacturing enterprises with annual industrial output value exceeding 2 billion yuan, 3 billion yuan, and 5 billion yuan for the first time, a one-time reward will be given to the core team of the enterprise based on a ratio of 1 ‰ of the part exceeding 2 billion yuan, 3 billion yuan, and 5 billion yuan. Each enterprise will receive a maximum reward of 3 million yuan each time, and a reward will be given once for each step up.

Intelligent Connected Vehicle Industry Strives to Break through 70 Billion Yuan in 2025

In addition to focusing on the agglomeration and innovative development of semiconductor and integrated circuit industries, the district has also recently introduced measures for the development of the intelligent networked vehicle industry.

In early March of this year, Bao'an released the "Implementation Plan for Cultivating and Developing the Intelligent Connected Vehicle Industry Cluster" (hereinafter referred to as the "Implementation Plan"), proposing that by 2025, the cultivation of Bao'an Intelligent Connected Vehicle Industry Cluster will achieve significant results, striving to achieve a scale of output value exceeding 70 billion yuan and a scale of added value exceeding 20 billion yuan, and becoming an innovative manufacturing base for incremental components of intelligent connected vehicles in Shenzhen Guangdong-Hong Kong-Macao Greater Bay Area Intelligent Connected Vehicle Industry Innovation Cluster.

The Implementation Plan proposes the development goals of Bao'an Intelligent Connected Vehicle Industry Cluster from three dimensions: industrial scale, innovation capability, and industrial ecology:

By 2025, we will create 1-2 specialized parks for intelligent networked vehicles, cultivate and introduce 3-5 leading parts and components enterprises with strong innovation capabilities, obvious competitive advantages, and leading domestic and foreign enterprises, as well as a number of specialized and specialized "small giants" enterprises with advanced technology and market in the segmented fields, single champion manufacturers, and unicorn enterprises.

By 2025, a number of core technologies for incremental components of intelligent networked vehicles will be broken through and a number of innovative products and applications for intelligent networked vehicles will emerge in the key application fields of intelligent cockpit, intelligent driving, and vehicle specification level automotive component testing and certification.

By 2025, we will strive to introduce 1 complete vehicle manufacturing enterprise, 2-3 major enterprises in the automotive industry chain, establish a vehicle specification level automotive parts testing and certification platform, and introduce a number of local standards for intelligent networked automotive parts. Every year, 1-2 industrial summits, academic forums, and other activities are held to improve the innovation and entrepreneurship incubation environment.

Lay out three major projects and focus on eight key areas

     In the field of industrial innovation capability improvement projects, we will accelerate the tackling of core technologies for automotive intelligent networking. Support intelligent networked automotive enterprises or institutions in the region to jointly integrate upstream and downstream enterprises in the industrial chain, universities and institutions, focus on sensing systems, decision-making systems, and execution systems, and carry out technical breakthroughs around intelligent and networked technologies such as solid-state laser radar, millimeter wave radar, fiber optic inertial navigation, high computing power on-board computing platform, vehicle specification grade Soc chips, controlled by wire chassis, multi domain fusion central controller, new electronic and electrical architecture, 5G-V2X, and so on, Develop key component products that meet the mass production requirements for front assembly. Promote the industrialization of high-end products related to intelligent cockpit and automatic driving. Support industry leading enterprises in the region to exert their respective advantages, strengthen alliances, and carry out cooperation to promote the industrialization of autonomous and intelligent cockpit related products such as vehicle specification level laser radar, 4D millimeter wave radar, optical fiber inertial navigation, AR-HUD, high-end autonomous driving domain controller, and cockpit domain controller, and encourage relevant enterprises to establish production lines for vehicle specification level components in Bao'an District.

In terms of industrial scale cultivation projects, actively promote the construction of intelligent networked vehicle specialized parks. Relying on high-quality land spaces such as the Yanluo Intelligent Connected Vehicle Industrial Park in Bao'an District, an intelligent connected vehicle specialized park is established around key components such as intelligent cabins, autonomous driving sensors, vehicle domain controllers, and vehicle chassis by wire. Sorting out the space needs of parts enterprises, building a batch of standardized or customized workshops for automobile parts, and realizing the "package occupancy" of enterprises. Cultivate auto parts enterprises in the zone to become bigger and stronger. Support potential auto parts companies in the region to become bigger and stronger through mergers and acquisitions, product line upgrades, digital transformation, and other ways, leading the high-quality development of the industry. Encourage enterprises to carry out technological transformation of production lines/production units, build automated assembly and inspection production lines, and improve the level of intelligent manufacturing of enterprises.

In terms of industrial ecological improvement projects, implement precise investment promotion plans. Focusing on the downstream vehicle, intelligent cockpit, autonomous driving, intelligent Internet connection and other links, we will focus on global advantageous resources, recruit large and good businesses, and promote the high-quality development of the intelligent Internet connection automobile industry in Bao'an District with large enterprises and projects. Targeted investment promotion is aimed at domestic vehicle manufacturing enterprises with growth potential, as well as auto parts enterprises with national and global influence, to attract chain driven intelligent connected vehicle related enterprises to settle in Bao'an, establish production lines and research and development bases, and promote high-quality development of the core industry chain of intelligent connected vehicles in Bao'an District. Establish a vehicle specification level vehicle parts testing and certification platform. Promote the opening of autonomous driving testing at district level. In the new construction and comprehensive renovation projects of roads in the area, it is planned to increase roadside intelligent and networked transportation facilities, and improve the level of intelligent transportation management. Relying on the opportunity for Shenzhen to gradually open up the whole area intelligent connected vehicle testing, apply to the municipal transportation authority to gradually promote the road testing and commercial operation of Bao'an District's whole area intelligent connected vehicle, provide application scenarios for the further realization of autonomous driving of intelligent connected vehicles, and become a fertile ground for the development of the intelligent connected vehicle industry. Support high-quality activities in the field of intelligent connected vehicles. Focusing on the fields of complete vehicle, intelligent cockpit, autonomous driving, vehicle road collaboration, and supporting well-known enterprises, universities, research institutions, and industry organizations to hold industry influential industry summits, high-end forums, exhibitions, and other activities in Bao'an District.

In addition, according to the Implementation Plan, in 2022, the value added of the intelligent connected vehicle industry in Bao'an District will be about 13.05 billion yuan, with 743 related enterprises in the field of intelligent connected vehicles. A number of leading enterprises such as Valeo, Hangsheng Electronics, Guhe Electric, Jijia Baowei, and specialized and specialized "small giants" have emerged, mainly involving intelligent cockpit, autonomous driving area controller, vehicle connector, laser radar, and other types.