By Ma Yuan, Research team on “Policies Supporting the Development of Chinese Integrated Circuit Industry”, Enterprise Research Institute, DRC

Research report No.172, 2017 (Total 5247) 2017-12-8

Abstract: As the core of information technology industry, integrated circuit industry is of strategic and fundamental importance, leading and supporting the development of China’s economy and society and ensuring the cyberspace safety. In recent years, China has seized the opportunity brought about by rising demands in the domestic market. In order to overcome the late-comers’ disadvantages, the government has enforced the support for industrial reforms, implemented market-based national strategies, increased capital input and improved the policy environment. As a result, China’s integrated circuit industry has developed rapidly. However, the developed countries and regions are quite anxious about China’s progress as it might exert some impact on their industrial benefits and they have therefore adopted relevant countermeasures. In face of the changes in the arena of international competitions, China should continue to implement the program for the development of integrated circuit industry, improve incentive mechanisms to attract external industrial factors and make proper arrangement in advance for R&D projects in cutting-edge areas. Externally, China should handle the international trade frictions in an appropriate manner, make the domestic policies better known to the rest of the world and draw on other countries’ experience to protect Chinese industrial benefits with international rules so as to maintain the strong momentum of its integrated circuit industry.

Key words: integrated circuit industry, international competitions, late-comers’ disadvantages, policy options