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City sees gold in ICs
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SHENZHEN plans to establish itself as a major supplier of integrated circuits (IC), a new competitive field considered by many to be the heart of the information technology industry, over the next decade.
To that end, the local government recently unveiled a new incentive package to promote development and manufacturing of integrated circuits.
The incentives cover such aspects of the industry as finances, taxation, marketing and human resources, and are integrated to facilitate the operation of companies engaged in research, development and manufacturing of integrated circuits.
The new development especially targets those with investment worth over eight billion yuan and who are developing cutting-edge ICs smaller than 0.25 microns.
As part of the incentives, the local government pledges to build an integrated circuit industrial park with an area of three to five square kilometres. The local government will bear all the cost associated with the initial land and auxiliary developments. In addition, it will subsidize residential companies to cover part of the utility and loan costs.
Furthermore these companies will be allowed to set aside 15 per cent of their net revenue for R&D. They are also entitled to a six-per cent tax break and tariff exemptions for importation of production materials.
The government also promises speedy Customs service for the import and export trade of these companies.
In order to attract top-notch research specialists in this area, the government has offered attractive housing plans and special residential permits for their families.
All these incentive policies will remain effective until the end of 2010.
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