Only two companies in China qualify for the incentive – SMIC and Hua Hong.
For companies using nodes between 65nm and 28nm there is a tax incentive worth 50% of the tax rate for five years.
Most Chinese companies use processes at 55nm and older.
For companies involved in chip design, packaging, testing and relevant equipment, materials and software enterprises, the first two years of profits will be tax exempt and thereafter companies get a 50% discount on the tax rate of 25% over the susequent three years.
In July SMIC raised $7.58 billion by selling shares to the public and last week announced plans to build a $7.6 billion foundry in Beijing, focusing on the 28nm process and more advanced nodes, with the aim of producing about 100,000 12-inch wafers per month.
Source: electronicsweekly
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