Chapter 1 General Provisions
Article 1 These policies are formulated to implement the "Notice of the State Council on Issuing Several Policies to Promote the High-Quality Development of the Integrated Circuit and Software Industries in the New Era" (State Council Document [2020] No. 8) and to promote the high-quality development of Shanghai’s integrated circuit and software industries in the new era.
Article 2 These policies apply to enterprises and institutions in Shanghai engaged in integrated circuit manufacturing, equipment, materials, and design (including IP and EDA; hereinafter the same), as well as advanced packaging and testing, provided they meet the relevant criteria; and to enterprises and institutions whose primary business is software product development and related information technology services.
Chapter II Talent Support Policies
Article 3 Optimize incentive policies for R&D and design personnel and enterprise core teams. Optimize the support structure for R&D and design personnel, with a focus on supporting R&D and design personnel in integrated circuit manufacturing, equipment, materials, design, and advanced packaging and testing enterprises undertaking major national and municipal research and development tasks; as well as R&D and design personnel in enterprises engaged in basic software, industrial software, emerging technology software, and information security software; and large-scale industry application software enterprises that align with national planning and layout guidelines.
Integrated circuit and software enterprises are encouraged to expand their industrial scale. For integrated circuit equipment and materials, EDA, design, and software enterprises that first meet the annual main business revenue thresholds, the municipal and district-level governments shall provide tiered rewards to their core teams. For enterprises in the fields of basic software, industrial software, and information security software, the annual main business revenue thresholds may be further relaxed.
The maximum amount of the individual rewards mentioned above shall not exceed 500,000 yuan. Integrated circuit and software enterprises recognized by the municipal industry authorities may apply for and enjoy the reward policy in the year of their introduction. (Responsible Departments and Units: Municipal Commission of Economy and Information Technology, Municipal Finance Bureau, Lingang New Area Management Committee, relevant district governments)
Article 4 Increase support for high-end, in-demand talent from abroad. High-end, in-demand talent from abroad working in key industries such as integrated circuits, basic software, and information technology services within the China (Shanghai) Pilot Free Trade Zone, the Lingang New Area, and the Zhangjiang National Independent Innovation Demonstration Zone shall be provided with support in accordance with relevant policies. (Responsible departments and units: Lingang New Area Management Committee, Shanghai Science and Technology Innovation Office, Municipal Finance Bureau, relevant district governments)
Article 5 Support enterprises in recruiting talent. Entities listed on the national list of key integrated circuit and software enterprises shall, upon recommendation by the Office of the Municipal Leading Group for Strategic Emerging Industries to the relevant competent authorities, be included in the list of key employers for the current year’s employment of non-Shanghai-native recent graduates from regular higher education institutions. When such entities recruit eligible high-level talent, such talent shall be directly included in relevant municipal talent recruitment and cultivation programs.(Responsible Departments: Municipal Education Commission, Municipal Party Committee Organization Department (Office of the Municipal Talent Work Leading Group), Municipal Development and Reform Commission, Municipal Human Resources and Social Security Bureau, Municipal Public Security Bureau)
Article 6 Strengthen housing support for enterprise talent. Integrate circuit and software enterprises recognized by municipal industry authorities into the scope of municipal talent apartment housing support. Include R&D personnel at national-level integrated circuit innovation platforms in Shanghai within the scope of municipal talent rental subsidies. (Responsible Departments: Municipal Party Committee Organization Department (Office of the Municipal Talent Work Leading Group), Municipal Commission of Housing and Urban-Rural Development, Municipal Housing Administration Bureau, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Finance Bureau)
Article 7 Strengthen the capacity-building for talent cultivation in higher education institutions. Promote the establishment of microelectronics colleges and the development of “Integrated Circuit Science and Engineering” as a first-level discipline at universities in Shanghai, and actively establish distinctive and exemplary software colleges. Encourage universities in Shanghai to increase enrollment quotas for undergraduate and graduate students in microelectronics and software-related majors. Facilitate the opening of the city’s integrated circuit production lines and pilot production lines to microelectronics colleges to provide practical training positions for students, and encourage relevant universities to incorporate these into the production practice courses for master’s and undergraduate students in related majors.(Responsible Departments: Municipal Education Commission, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission)
Article 8 Establish a mechanism linking software professional certification with professional competency evaluation. Support the alignment of internationally and domestically recognized software professional certification levels—such as those in operating systems, databases, information security, and project management—with professional competency evaluations, and implement corresponding talent policies based on specific criteria. (Responsible Departments: Municipal Human Resources and Social Security Bureau, Municipal Commission of Economy and Information Technology)
Chapter III: Enterprise Cultivation Support Policies
Article 9 Increase support through special funds. For major integrated circuit and software projects that meet the following conditions, the Municipal Special Fund for Strategic Emerging Industries shall provide further increased support:
(1) For major projects in integrated circuit equipment and materials that have achieved significant breakthroughs in independent R&D of components and raw materials and have realized actual sales, the support ratio shall be 30% of the project’s new investment, with the support amount generally not exceeding 100 million yuan;
(2) For major projects in EDA, basic software, industrial software, and information security software, the threshold for new project investment may be relaxed to no less than 50 million yuan; the support ratio shall be 30% of the new project investment, with the support amount generally not exceeding 100 million yuan;
(3) For eligible design enterprises providing wafer fabrication services that promote the application of integrated circuit production lines with process nodes of 28 nanometers or smaller within the municipality, the relevant wafer fabrication costs shall be included in the project’s new investment. A 30% subsidy will be provided for these costs, with the subsidy amount generally not exceeding 100 million yuan.
Through special funds for the city’s strategic emerging industries, high-quality industrial development, scientific and technological innovation, the Lingang New Area, the Zhangjiang National Independent Innovation Demonstration Zone, and the Zhangjiang Science City, efforts will be intensified to provide coordinated support for major integrated circuit and software projects. The Office of the Municipal Leading Group for Strategic Emerging Industries will strengthen overall coordination.District governments in key areas designated for the city’s integrated circuit industry planning and layout shall establish special funds for integrated circuit development. (Responsible Departments and Units: Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Shanghai Science and Technology Innovation Office, Municipal Finance Bureau, Lingang New Area Administrative Committee, Pudong New Area Government, Jiading District Government)
Article 10 Strengthen capacity assurance for small and medium-sized integrated circuit design enterprises. Establish a joint conference mechanism for emergency supply assurance for small and medium-sized integrated circuit design enterprises. Actively promote the opening of a certain portion of production capacity from integrated circuit production lines and pilot production lines supported by the municipality, giving priority to serving the capacity needs of small and medium-sized design enterprises undertaking national technology R&D tasks or developing important products. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Science and Technology Commission, Municipal State-owned Assets Supervision and Administration Commission)
Article 11 Optimize the mechanism for fostering software innovation platforms. Pilot a competitive mechanism where entities are first allowed to form independently and then receive support based on merit. In fields such as foundational software, industrial software, and information security software, cultivate a number of municipal-level engineering research centers and technology innovation centers, and support the establishment of national-level innovation platforms. Encourage municipal software enterprise parks to actively strive to become “China’s Top Software Parks.” (Responsible Departments: Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission)
Chapter IV Investment and Financing Support Policies
Article 12: Continue to expand the scale of the integrated circuit industry fund.Municipal state-owned investment platforms and relevant park development platforms shall jointly increase fundraising support for the Shanghai Integrated Circuit Industry Investment Fund and the Integrated Circuit Equipment and Materials Fund. Through market-oriented approaches, continue to expand and strengthen the Integrated Circuit Design Fund. Guide local design enterprises to jointly initiate or participate in the establishment of the Shanghai Integrated Circuit Production Line Investment Fund and participate in investments in new integrated circuit production lines within the municipality. (Responsible Departments and Units: Municipal Commission of Economy and Information Technology, Municipal State-owned Assets Supervision and Administration Commission, Municipal Development and Reform Commission, Pudong New Area Government)
Article 13 Innovate credit support and financing methods for the software industry. Implement a special interest subsidy policy for medium- and long-term loans at preferential interest rates for the local integrated circuit industry. Provide special interest subsidies for long-term loans at preferential rates for eligible corporate merger and acquisition loans, bond financing, and bonds issued by enterprises to contribute capital to the Shanghai Integrated Circuit Industry Investment Fund and the Integrated Circuit Equipment and Materials Fund. Relying on Shanghai’s “Credit-Easy Loan” platform, big data-driven inclusive finance applications, and the “Bank-Tax Interaction” initiative, support banks in developing specialized financing products for software enterprises.(Responsible Departments: Municipal Development and Reform Commission, Municipal Local Financial Regulatory Bureau, Shanghai Banking and Insurance Regulatory Bureau)
Article 14 Support insurance institutions in participating in the development of the integrated circuit industry. Strengthen the supply of insurance products suited to the characteristics of the integrated circuit industry; explore the establishment of an integrated circuit insurance consortium and a mechanism for dispersing catastrophic risk; support the online verification of domestically developed, secure, and controllable equipment, materials, and EDA; and study and formulate insurance premium subsidy support policies for key sectors and projects. (Responsible Departments: Shanghai Banking and Insurance Regulatory Bureau, Municipal Local Financial Regulatory Bureau, Municipal Commission of Economy and Informatization, Municipal Finance Bureau)
Article 15 Support financing guarantee services for integrated circuit and software enterprises. Encourage market-oriented financing guarantee institutions to provide financing guarantee services to local integrated circuit equipment and materials enterprises; for guarantee fees not exceeding 2%, provide a 75% subsidy on the corresponding portion of the guarantee fees to the financing guarantee institutions. Promote local policy-based financing guarantee funds to increase their efforts in providing financing guarantee services to enterprises. (Responsible Departments: Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology, Municipal Finance Bureau)
Chapter V: R&D and Application Support Policies
Article 16 Launch Major Science and Technology Projects in Key Areas. Organize municipal-level major science and technology projects focused on key areas such as integrated circuit equipment and materials. Encourage enterprises to take the lead in undertaking national technology R&D tasks; the municipality will provide support, such as matching funds, in accordance with relevant policies. (Responsible Departments: Municipal Development and Reform Commission, Municipal Science and Technology Commission, Municipal Commission of Economy and Information Technology, Municipal Education Commission, Municipal Finance Bureau)
Article 17 Optimize policies for the first-round wafer fabrication of integrated circuit products. Priority support shall be provided to small and medium-sized design enterprises and key innovation platforms for conducting the first-round wafer fabrication of engineering products using the city’s integrated circuit production lines and pilot production lines. Consideration shall be given to including MPW (multi-project wafer) fabrication conducted by small and medium-sized integrated circuit design enterprises through service providers recognized by the city’s competent industry authorities within the scope of support.Support doctoral students and postdoctoral researchers in microelectronics-related disciplines at local universities to conduct research using the city’s integrated circuit production lines and pilot production lines, and give priority support to relevant science and technology innovation projects. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Education Commission)
Article 18: Increase support for the verification and application of domestically developed, secure, and controllable equipment and materials. Provide certain R&D subsidies for municipal integrated circuit production lines and pilot production lines that provide verification services for the city’s first-of-a-kind integrated circuit equipment and initial batches of new materials. Specifically, the subsidy for the verification of a single piece of equipment shall not exceed 1 million yuan, and the subsidy for the verification of each batch of materials shall not exceed 500,000 yuan.Support for the application and validation of domestically developed, secure, and controllable equipment and materials shall be a prerequisite for new integrated circuit production line projects in the city to receive government funding. The procurement ratio of such equipment and materials shall be no less than 30% of the government funding provided, with the specific ratio subject to dynamic adjustment based on actual circumstances. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Science and Technology Commission, Municipal Finance Bureau)
Article 19: Implement a special initiative for EDA ecosystem development. Organize and carry out research and development efforts on EDA software technologies, supporting qualified enterprises in achieving breakthroughs in full-process EDA tools on a comprehensive scale. Support enterprises in building open EDA cloud platforms, organize design users and relevant EDA enterprises to jointly conduct R&D verification, and include the platform within the scope of “Innovation Vouchers” for support.For local integrated circuit enterprises and innovation platforms purchasing eligible, domestically developed, secure, and controllable EDA tools, a 50% subsidy will be provided based on the actual procurement amount. Support will be provided for enterprises to establish teaching courses on domestically developed, secure, and controllable EDA tools at universities, which will be incorporated into the curriculum. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Cyberspace Administration Office, Municipal Development and Reform Commission, Municipal Finance Bureau, Municipal Education Commission)
Article 20 Optimize application policies for first-version software and first-unit equipment. Support the application of first-version software through a post-subsidy mechanism, with funding amounting to 20% of the cumulative value of sales contracts for the first three first-version software products, up to a maximum of 2 million yuan; encourage local state-owned enterprises and public institutions to prioritize the adoption of foundational software, industrial software, and information security software included in national and municipal key catalogs.Integrated circuit equipment R&D enterprises shall be permitted to benefit from the "first-of-its-kind" policy without being subject to prerequisites such as the first installment of a contract. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal State-owned Assets Supervision and Administration Commission, Municipal Finance Bureau)
Article 21 Strengthen the development of industry standards. In accordance with relevant regulations, provide appropriate funding to integrated circuit and software enterprises that take the lead in formulating standards at all levels. Support the construction of full-process service platforms for the research, development, verification, and application of integrated circuit standards within national-level innovation platforms in Shanghai, and actively take the lead in building the national standard system in certain fields. (Responsible Departments and Units: Municipal Market Regulation Bureau, relevant district governments)
Chapter VI Support Policies for Collaborative Innovation in the Yangtze River Delta
Article 22 Establish a “challenge-based” collaborative R&D mechanism. Relying on the Yangtze River Delta National Technology Innovation Center, build a platform for publishing demand information regarding “challenge-based” R&D for key integrated circuit components, materials, and core algorithms. This platform will serve the needs of enterprises for technological R&D and industrial chain development cooperation, with a focus on attracting various innovation entities across the Yangtze River Delta to participate in these challenges. (Responsible Departments: Municipal Science and Technology Commission, Municipal Commission of Economy and Information Technology, Municipal Education Commission)
Article 23 Support the coordinated development of the integrated circuit equipment industry in the Yangtze River Delta region. For major integrated circuit equipment in Shanghai that is in the demonstration and application phase and is first applied in integrated circuit production lines within the Yangtze River Delta region, support shall be provided to the equipment users in accordance with the “manufacturer-user” two-way support policy under the city’s Special Fund for Strategic Emerging Industries. (Responsible Departments: Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology)
Article 24: Organize software algorithm, information technology application innovation, and EDA competitions in the Yangtze River Delta. Support relevant industry associations and organizations in hosting software algorithm and information technology application innovation competitions based on industry development needs and practical challenges faced by enterprises, to attract the application and implementation of innovative algorithms and information technology achievements from around the world in Shanghai. Support enterprises in establishing EDA tool application competitions at key universities in the Yangtze River Delta. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Education Commission)
Chapter VII Industry Management Support Policies
Article 25 Optimize the investment management system for integrated circuit projects. For major integrated circuit manufacturing projects in Pudong New Area, the Lingang New Area, and Jiading District that require industry guidance in accordance with regulations, the district government or management committee where the project is located shall issue a review opinion and submit it to the municipal government.Optimize and adjust the scope of prefabricated building implementation; the main cleanrooms of factory buildings for integrated circuit industry projects shall not be included in the scope of prefabricated building implementation in the city. (Responsible Departments and Units: Pudong New Area Government, Jiading District Government, Lingang New Area Management Committee, Municipal Commission of Housing and Urban-Rural Development)
Article 26: Accelerate the development of the Shanghai Electronic Chemicals Special Zone. Support the construction of the Shanghai Electronic Chemicals Special Zone, prioritize the placement of major industrial projects in the integrated circuit materials sector, build public warehousing facilities for electronic chemicals dedicated to integrated circuits, and establish the Shanghai Electronic Chemicals Innovation Research Institute and joint university-enterprise laboratories.The Shanghai Chemical Industry Park Special Development Fund shall further focus on integrated circuit material manufacturing, R&D, and warehousing projects, providing appropriate subsidies. (Responsible departments and units: Shanghai Chemical Industry Park Management Committee, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal State-owned Assets Supervision and Administration Commission, Municipal Emergency Management Bureau, Municipal Planning and Natural Resources Bureau, Municipal Ecology and Environment Bureau)
Article 27: Continue to implement policies to facilitate imports and exports and provide interest subsidies. Implement the customs enterprise classification management system to expedite customs clearance and inspection procedures for imports of raw materials and equipment by enterprises engaged in the production of integrated circuits, equipment, and materials encouraged by the state, as well as by key design and key software enterprises.Improve the foreign exchange classification management system and provide more lenient and flexible management models for creditworthy enterprises. For integrated circuit and software enterprises purchasing technology usage rights or ownership from overseas enterprises, as well as those engaging in technology exports, interest subsidy policies shall be granted in accordance with relevant national regulations. (Responsible Departments: Shanghai Customs, Municipal Commission of Commerce, Shanghai Branch of the State Administration of Foreign Exchange)
These policies shall take effect on January 1, 2022. Where these policies overlap with other municipal industrial policies, policies of the same category shall be implemented in accordance with the principles of selecting the most favorable, applying the highest standard, and avoiding duplication.
