Original Title: Notice Issued by the Municipal Government on the "Several Policies Regarding Further Encouraging the Development of the Software and Integrated Circuit Industries in This City"
Chapter I General Provisions
Article 1: To implement the "Opinions on Accelerating the Construction of a Globally Influential Science and Technology Innovation Center" (Shu Wei Fa [2015] No. 7) issued by the Municipal Party Committee and the Municipal Government, and to further optimize and improve the development environment for the city’s software and integrated circuit industries,and in accordance with the “Notice of the State Council on Issuing Several Policies to Further Encourage the Development of the Software and Integrated Circuit Industries” (Guo Fa [2011] No. 4) and the “Notice of the State Council on Issuing the National Integrated Circuit Industry Development Promotion Outline” (Guo Fa [2014] No. 4), among others, these policies are hereby formulated.
Article 2 The software industry and the integrated circuit industry shall be regarded as core sectors for the construction of Shanghai’s globally influential science and technology innovation center and the development of strategic emerging industries. Efforts shall be made to accelerate the high-end development of the software industry, promote independent innovation across the entire integrated circuit industry chain, enhance the scale and level of these industries, and build software and integrated circuit industry clusters and innovation hubs with international influence.
Article 3 This policy applies to enterprises and institutions registered in the municipality that meet the relevant conditions and whose primary business involves software development and integrated circuit design and manufacturing.
Chapter II Investment and Financing Policies
Article 4: The municipality will continue to allocate special funds for the development of the software and integrated circuit industries. (Responsible Departments: Municipal Finance Bureau, Municipal Commission of Economy and Information Technology)
Article 5: Investment in new projects for advanced technology integrated circuit chip production lines of 12 inches or larger, as well as in the R&D and industrialization of major integrated circuit equipment, is encouraged. For eligible projects, the municipal and district-level finances shall provide appropriate support in accordance with relevant regulations. The upgrading and modernization of 8-inch specialty integrated circuit chip production lines are encouraged. Relevant infrastructure support, including land, planning, and the supply of water, electricity, and gas, shall be actively provided for such projects. (Responsible Departments: Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Finance Bureau)
Article 6: Fully leverage the role of national industrial funds and guiding funds in promoting the development of the city’s software and integrated circuit industries. Establish a municipal integrated circuit industry fund. Relying on this fund, prioritize support for the construction of advanced integrated circuit production lines, expand the scale of the city’s integrated circuit design industry through market-oriented approaches, and support the further development of the equipment and materials sectors.Actively support eligible software and integrated circuit enterprises in raising funds through various channels, such as listing on the Science and Technology Innovation Board of the Shanghai Equity Exchange, initial public offerings (IPOs), and bond issuances, to broaden direct financing channels; encourage market entities to grow and expand through mergers and acquisitions (M&A) and financial leasing. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Financial Services Office)
Chapter III: Enterprise Cultivation Policies
Article 7: For software and integrated circuit enterprises whose verified annual operating revenue exceeds 20 billion yuan, 10 billion yuan, 5 billion yuan, or 1 billion yuan for the first time, the municipal and district-level governments shall provide tiered rewards to the enterprises’ core teams; to encourage enterprises to establish operations in Shanghai, new software and integrated circuit enterprises entering Shanghai with actual到位 investments exceeding 10 billion yuan, 5 billion yuan, or 1 billion yuan shall receive tiered R&D funding from the relevant districts or industrial parks.(Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Finance Bureau, relevant district governments, and park management committees)
Article 8: Implement the Leading Enterprise Cultivation Program for Key Industrial Sectors and establish an enterprise cultivation database. The city will provide appropriate support to leading enterprises demonstrating outstanding growth potential. (Responsible Department: Municipal Commission of Economy and Information Technology)
Chapter IV: R&D Policies
Article 9: For software and integrated circuit enterprises purchasing technology usage rights or ownership from overseas enterprises, where the purchased technology complies with the “Catalog of Advanced Technologies and Products Encouraged for Import” stipulated by the state for that year, the city shall actively seek national import interest subsidy support. Concurrently, the city shall formulate a corresponding catalog of incentives and support measures to provide assistance to eligible enterprises. (Responsible Departments: Municipal Commission of Commerce, Municipal Commission of Economy and Information Technology, Municipal Finance Bureau)
Article 10: For local software and integrated circuit enterprises undertaking or participating in national projects such as major national science and technology special projects, the local funding matching ratio shall be implemented in accordance with relevant municipal regulations. (Responsible Departments: Municipal Science and Technology Commission, Municipal Finance Bureau, Municipal Development and Reform Commission)
Article 11: For local integrated circuit design enterprises that utilize local integrated circuit production lines to conduct the first round of wafer fabrication for engineering products meeting certain conditions, the municipal and district-level governments shall provide certain support to the design enterprises, to be used for their R&D investments. (Responsible Department: Municipal Commission of Economy and Information Technology)
Article 12: A certain reward may be granted for the first version of a software product or core IP successfully developed by an enterprise and delivered to users; for the first batch of high-end integrated circuit products successfully developed by an enterprise and delivered to users, the municipality will explore providing certain support. (Responsible Departments: Municipal Commission of Economy and Information Technology)
Article 13: Local software and integrated circuit enterprises are encouraged to strengthen industry-academia-research-application collaboration to promote the coordinated development of the industrial chain. Local universities are supported in further optimizing their software and integrated circuit curriculum to ensure a close alignment between talent development and market demand. Local software and integrated circuit enterprises are encouraged to collaborate with local universities and research institutes to jointly cultivate highly skilled talent and enhance the quality of talent development.Local software and integrated circuit enterprises are encouraged to collaborate with local universities and research institutes to establish joint industry-academia-research-application laboratories and R&D centers to resolve core technological challenges faced by enterprises. The construction of training bases for highly skilled software and integrated circuit professionals is encouraged, along with the implementation of engineering-oriented talent training programs; eligible projects will receive appropriate support. (Responsible Departments: Municipal Education Commission, Municipal Commission of Economy and Information Technology, Municipal Human Resources and Social Security Bureau, Municipal Science and Technology Commission)
Article 14: The Municipality shall provide certain funding to enterprises that independently develop world-leading technologies, establish core intellectual property rights, and license such technologies to leading domestic and international enterprises, or that take the lead in formulating relevant international and domestic technical standards. (Responsible Department: Municipal Commission of Economy and Information Technology)
Chapter V: Talent Policies
Article 15: High-level talent who have made outstanding contributions in the software and integrated circuit industries shall be provided with appropriate funding in accordance with the city’s talent policies, or shall be commended and rewarded in accordance with relevant national and municipal regulations on evaluation, qualification, and commendation. (Responsible Departments: Municipal Human Resources and Social Security Bureau, Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Finance Bureau, etc.)
Article 16: For key software and integrated circuit design enterprises included in the national planning layout that meet relevant national regulations, as well as enterprises undertaking major national science and technology projects or major municipal strategic emerging industry projects, support shall be provided in accordance with special talent recruitment policies when they need to recruit scarce, urgently needed, and exceptionally talented personnel. (Responsible Departments: Municipal Human Resources and Social Security Bureau, Municipal Commission of Economy and Information Technology)
Article 17: Differentiated incentive policies shall be refined and continued for software designers and integrated circuit industry designers who have developed products with independent intellectual property rights. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Finance Bureau)
Article 18: For talent in software and integrated circuit enterprises who meet relevant national and municipal regulations, support shall be provided in terms of residence permits, household registration, and other policies in accordance with the relevant provisions of the municipal talent recruitment policy. (Responsible Department: Municipal Human Resources and Social Security Bureau)
Article 19: For high-level overseas talent introduced in the software and integrated circuit sectors, ensure benefits such as children’s education in accordance with relevant municipal policies. (Responsible Departments: Municipal Education Commission, Municipal Human Resources and Social Security Bureau, Municipal Public Security Bureau)
Article 20: Relevant industrial parks are encouraged to support software and integrated circuit enterprises in constructing their own talent apartments and to implement talent housing programs through measures such as loan interest subsidies and rent subsidies. Relevant districts or industrial parks are encouraged to provide one-time settlement subsidies to newly recruited college graduates and to give priority to software and integrated circuit enterprises in urgent need of talent when they apply for public rental housing or talent apartments. (Responsible Departments: Relevant District Governments, Zhangjiang High-Tech Park, and other industrial parks)
Chapter VI Intellectual Property Policies
Article 21: The city continues to encourage software and integrated circuit enterprises to apply for invention patents, trademarks, domestic and international software copyrights, and exclusive rights to integrated circuit layout designs. The city will provide certain subsidies for application and maintenance fees in accordance with relevant regulations. Relying on the Intellectual Property Trading Center, the city will vigorously develop the intellectual property service industry. (Responsible Departments: Municipal Intellectual Property Office, Municipal Copyright Bureau, Municipal Administration for Industry and Commerce)
Article 22: Further improve the joint law enforcement mechanism among intellectual property, industry and commerce (market regulation), and copyright authorities; strengthen law enforcement efforts in industry and commerce (market regulation) and cultural sectors; and establish a rapid response mechanism for investigating and addressing intellectual property infringements in the software and integrated circuit industries. Relying on the Shanghai Public Credit Information Service Platform, strengthen the collection of information on dishonest acts such as intellectual property infringement and implement coordinated disciplinary measures. In principle, enterprises and their legal representatives must maintain good credit standing to be eligible for relevant municipal support policies.(Responsible Departments: Municipal Intellectual Property Office, Municipal Copyright Office, Municipal Administration for Industry and Commerce, Municipal Information Center)
Chapter 7: Import and Export Policies
Article 23: Actively seek national authorization to further explore and improve a full-industry-chain regulatory system led by integrated circuit design. Continue to implement the customs and inspection and quarantine enterprise classification management system, expand general trade imports and exports, and continuously improve customs clearance facilitation measures for enterprises with high credit ratings. Improve the enterprise foreign exchange classification management system and provide more lenient and flexible management models for creditworthy enterprises. (Responsible Departments: Shanghai Customs, Municipal Commission of Commerce, Shanghai Branch of the State Administration of Foreign Exchange)
Article 24: Implement the national “Belt and Road” initiative and encourage local software and integrated circuit enterprises to accelerate their strategic deployment in countries (and regions) along the “Belt and Road” route. Further transform government functions, improve administrative approval mechanisms, and support enterprises in establishing overseas R&D centers or integrating overseas industrial technologies through equity mergers and acquisitions, thereby enhancing the technological capabilities of the software and integrated circuit industries and driving enterprises to “go global.” (Responsible Departments: Municipal Development and Reform Commission, Municipal Commission of Commerce)
Article 25: Research and explore relevant policies to encourage the export of software and integrated circuit products with independent intellectual property rights in the municipality. Encourage the export of technologies in fields such as software and integrated circuits; for such technology exports, in addition to enjoying national interest subsidies for technology exports, the municipality shall provide certain support if the export volume reaches a certain scale. (Responsible Departments: Municipal Commission of Commerce, Municipal Finance Bureau)
Chapter VIII: Government Administration
Article 26: For projects in the software and integrated circuit design sectors supported by the city’s special fiscal funds, project entities shall be permitted to independently determine their investment structure and increase the proportion of R&D investment. A parallel approval mechanism for major projects in the software and integrated circuit sectors shall be explored. For projects included in the city’s major engineering initiatives, procedures such as filing (or approval), environmental impact assessment, planning, land use, and energy assessment for software and integrated circuit industry projects shall be further optimized and streamlined in accordance with the requirements for advancing preliminary work on major city projects.Efforts to build software and integrated circuit industrial bases will be intensified. A new batch of municipal-level software and integrated circuit industrial parks will be established to enhance the service capabilities of these industrial bases. (Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Major Projects Office; relevant departments, district governments, and park management committees)
Article 27: When applying for support under this policy, enterprises shall adhere to the principle of honesty and good faith. Any acts that violate national or municipal regulations on the management of special funds—such as fabricating information to fraudulently obtain, withhold, misappropriate, or divert special funds—shall be recorded in the enterprise’s credit history. The project-bearing entity and its responsible personnel shall be held accountable, and the competent authority for special funds shall recover any funds already disbursed and revoke the entity’s eligibility to apply for relevant special funds for a period of three years.(Responsible Departments: Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Finance Bureau)
Chapter IX Supplementary Provisions
Article 28: All relevant responsible departments shall expedite the formulation of implementation rules to ensure the policy is effectively implemented and yields tangible results.
This policy shall take effect on April 15, 2017, and remain valid until December 31, 2020. For relevant enterprises and institutions that met the policy requirements between January 1, 2017, and the effective date of this policy, support shall be provided in accordance with this policy.
