Recently, the Ministry of Industry and Information Technology said that the development of China’s chip industry is now facing both opportunities and challenges. The Chinese government will provide substantial support at national level, to strengthen global cooperation and jointly build the chip industrial chain.

During the press conference, Tian Yulong, ministry spokesperson indicated that China has released a series of policies, offering tax cuts and incentives for the country’s advanced integrated circuit production companies.

Over the past five years, the development of China’s integrated circuit industry has been accelerating, although high-end chips have a high degree of external dependence. In 2020, China’s production volume of integrated circuit surpassed 260 billion, increased by 29.6%, according to National Bureau of Statistics. In 2019, China imported chips worth US$ 304, down by 2.6% on a yearly basis. Statistics from the State Council showed that China aims to increase its self-sufficiency rate of chips to 70% in 2025, from 30% in 2019.