'Semiconductor Self-Sufficiency Rate 70% Target' China Exempts Import Tariffs for Domestic Semiconductor Companies

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] Facing U.S. semiconductor supply restriction regulations, China is attempting to break through with its own technology, and the Chinese government has announced import tariff exemption measures for semiconductor companies.

On the 29th, China's Ministry of Finance, together with the General Administration of Customs and the State Taxation Administration, announced the "Notice on Import Tariff Policies Related to Supporting the Development of the Integrated Circuit Industry and Software Industry."

This measure targets companies producing logic circuits or memory with integrated circuit line widths of 65nm or less, and companies producing integrated circuits using special technologies such as radio frequency with line widths smaller than 0.25μm. These companies can receive tax benefits when importing raw materials and consumables that cannot be produced domestically in China or do not meet the required standards, sterile room-specific construction materials, auxiliary systems, and direct circuit production equipment parts.

This measure is retroactively applied to imports from July 27 of last year and is expected to continue until the end of 2030.

China has shown its intention to develop the semiconductor industry by including semiconductors and integrated circuits as one of the seven key scientific research items in the draft of the "14th Five-Year Plan and Long-Term Goals through 2035." The Chinese government has also set a plan to raise the domestic semiconductor self-sufficiency rate to 70% by 2025.

This content was produced with the assistance of AI translation services.