1 Overview of Shanghai’s Integrated Circuit Industry Shanghai, as the core area of China’s integrated circuit industry, has formed a complete industrial chain layout. As of 2024, the scale of Shanghai’s integrated circuit industry reached 390 billion yuan, accounting for more than 25% of the national total, and it is expected to exceed 500 billion yuan in 2025. The industry covers all aspects from design, manufacturing, packaging testing to equipment materials, forming a market pattern dominated by local enterprises in fields such as AI chips, memory chips, and analog chips. From a regional distribution perspective, Shanghai has formed a “one body and two wings” spatial pattern: with Pudong New Area as the core carrying area, the Lingang New Area and Jiading District as the two wings, and the Zhangjiang Science City and “Oriental Chip Port” dual-zone linkage innovation ecosystem. Each district has a differentiated positioning, such as Pudong focusing on the entire industrial chain, Jiading emphasizing automotive electronics, and Lingang focusing on advanced manufacturing, forming a good regional synergy effect. Table: Regional Distribution and Characteristics of Shanghai’s Integrated Circuit Industry
| Region | Industry Positioning | Representative Enterprises | 2025 Goals/Characteristics |
|---|---|---|---|
| Pudong New Area | Core of the entire industrial chain | SMIC, Weir, Zhongwei | 2027 output value of 300 billion, focusing on 7nm/Chiplet technology |
| Lingang New Area | Advanced manufacturing growth pole | Jita Semiconductor | 2025 scale of 100 billion, 12-inch wafer factory |
| Jiading District | Automotive electronics linkage | Shanghai Silicon Industry, Anke Packaging | Automotive-grade chips account for more than 30% of the national total |
| Songjiang District | Material support | Shanghai Hejing | Supplier of semiconductor silicon epitaxial wafers |
| Minhang District | Equipment support | Zhichun Technology | Cleaning equipment, wafer regeneration |
| Qingpu District | Memory chips | Dongxin Co., Ltd. | Expand NOR and NAND chip production capacity |
| Putuo District | Integrated circuit design | Focus on the “Suhua Chip Bay” brand | Automotive-grade, artificial intelligence chip design |
Shanghai’s integrated circuit industry hasover 300 upstream and downstream enterprises, including 35 listed companies, covering digital chip design (45.07%), analog chip design (25.71%), semiconductor materials (5.71%), equipment (8.57%), etc., forming a complete industrial ecosystem.
2 National-Level Support Policies
2.1 Tax Incentives
At the national level, several tax incentives have been provided for the integrated circuit industry, mainly including: Corporate Income Tax Incentives: For integrated circuit manufacturing enterprises with a line width of less than 28 nanometers and a business period of more than 15 years, a “Five Exemptions and Five Reductions” policy is implemented; other line width conditions also have corresponding reductions.Import Tax Incentives: Qualified imported equipment, key raw materials, etc., are exempt from customs duties and import value-added tax.R&D Expense Super Deduction: R&D expenses of manufacturing and technology-based SMEs can be deducted at a rate of 100%.Value-Added Tax Super Deduction: For specific integrated circuit enterprises, an additional 10% deduction is allowed based on the deductible input tax amount.
2.2 Industry Fund Support
National Integrated Circuit Industry Investment Fund: Supports technological innovation and large-scale development of the entire industrial chain through the “Big Fund”, focusing on key links such as chip manufacturing and equipment materials.
National-Level Project Support: Provides special funding support for integrated circuit enterprises undertaking major national science and technology projects, with a matching ratio of up to 30% of the total project investment.
- 2.3 List Management and Declaration
Key Reminder: To enjoy the above tax incentives, enterprises must be included in the “National Encouraged Integrated Circuit Enterprises or Project List” which is subject to annual dynamic management. The declaration period for the 2025 list isSeptember 25 to 30, October 9 to 14, and enterprises must submit applications through the information reporting system.
Table: National-Level Policy Contact Departments
| Policy Type | Responsible Department | Contact Method | Remarks |
|---|---|---|---|
| Tax Incentives | Shanghai Municipal Taxation Bureau of the State Administration of Taxation | Tax service halls of district taxation bureaus | Must first obtain integrated circuit enterprise certification |
| Industry Fund | Shanghai Municipal Economic and Information Commission | Apply through district economic committees | Concentrated acceptance every first quarter |
| Enterprise List | Municipal Economic and Information Commission (initial review) | Online system declaration + paper materials | Deadline for 2025 is October 14 |
3 Shanghai Municipal Inclusive Policies
Shanghai has built a comprehensive policy system around talent, funding, and R&D, as follows:
3.1 Talent Support Policies
R&D Design Personnel Rewards: A maximum reward of500,000 yuan/person is given to the core team of enterprises that first break through the revenue threshold.
Talent Housing Security: Recognized integrated circuit enterprises are included in the municipal talent apartment security scope, and R&D personnel from national-level innovation platforms in Shanghai can receive housing subsidies.
Overseas Talent Support: For high-end and urgently needed overseas talents engaged in the integrated circuit industry in the Lingang New Area and Zhangjiang Demonstration Zone, subsidies are provided for the portion of actual tax burden exceeding 15%.
- 3.2 Funding Support Policies
Major Project Support: For major projects such as equipment materials and EDA, a subsidy of30% of the new investment is provided, with a maximum of10 million yuan.Wafer Fabrication Subsidy: A subsidy of30% is provided for wafer fabrication costs of 28nm and below, with a maximum of10 million yuan.Financing Guarantee: A subsidy of75% of the guarantee fee for the portion not exceeding 2% is provided to financing guarantee institutions.
3.3 R&D Innovation Support
- First Set of Equipment: Verification services have a maximum subsidy of 1 million yuan, and the first batch of material verification has a maximum subsidy of 500,000 yuan.
- EDA Tool Subsidy: A subsidy of 50% is provided based on the actual purchase amount for purchasing self-developed and controllable EDA tools.
- MPW Wafer Fabrication Support: MPW wafer fabrication conducted by small and medium-sized design enterprises through recognized service institutions is included in the support scope.
Table: Overview of Core Policies for Shanghai’s Chip Industry
| Support Direction | Specific Measures | Subsidy Standards/Support Intensity | Responsible Department |
|---|---|---|---|
| Talent Incentives | Enterprise core team rewards | Up to 500,000 yuan/person | Municipal Economic and Information Commission, Municipal Human Resources and Social Security Bureau |
| Talent Apartment Security | Included in the municipal security system | Municipal Housing and Urban-Rural Development Management Committee | |
| Funding Support | Major projects in equipment materials, EDA | 30% subsidy on new investment, up to 10 million yuan | Municipal Economic and Information Commission, Municipal Development and Reform Commission |
| Wafer Fabrication of 28nm and below | 30% subsidy on wafer fabrication costs, up to 10 million yuan | Municipal Economic and Information Commission | |
| Financing Guarantee Support | 75% subsidy on guarantee fees for rates ≤2% | Municipal Local Financial Supervision Bureau | |
| R&D Innovation | First set of equipment/first batch of materials | Maximum subsidy of 1 million/500,000 | Municipal Economic and Information Commission |
| Self-developed EDA tool procurement | 50% subsidy | Municipal Economic and Information Commission, Municipal Science and Technology Commission | |
| MPW Wafer Fabrication Support | Support for small and medium-sized design enterprises and universities | Municipal Economic and Information Commission, Municipal Education Commission |
4 Detailed Explanation of District-Specific Policies
4.1 Special Operating Rules for Pudong New Area
Pudong New Area, as the core carrying area of Shanghai’s integrated circuit industry, has the most substantial policy support and covers the most complete links. Table: Pudong New Area Integrated Circuit Industry Support Policies
| Support Category | Support Content | Subsidy Ratio/Amount | Application Time | Contact Department |
|---|---|---|---|---|
| IP Purchase | High-end chip development | 20% of contract amount, maximum 3 million yuan per year | Two batches per year (March, July) | Pudong Economic and Information Commission |
| EDA Software Purchase | Design tools (including upgrades) | 20% of contract amount, maximum 2 million yuan per year | Two batches per year (March, July) | Pudong Economic and Information Commission |
| First Round of Wafer Fabrication | First round of wafer fabrication for engineering products | 30% of contract amount, maximum 10 million yuan per year | Two batches per year (March, July) | Pudong Economic and Information Commission |
| MPW Wafer Fabrication | Multi-project wafers | 30% of contract amount, maximum 5 million yuan per year | Two batches per year (March, July) | Pudong Economic and Information Commission |
| First Demonstration Application | First batch of high-end products | 20% of contract amount, maximum 5 million yuan per year | Two batches per year (March, July) | Pudong Economic and Information Commission |
Application Key Points: The policy is valid until December 31, 2025, and adopts a “regular application, batch review” approach. Enterprises must submit materials through the “Pudong Easy Access” platform, with the second batch of applications for 2025 expected to take place in July.
4.2 Special Support for Lingang New Area
Lingang New Area, as an industrial growth pole, has distinctive policy support:
- EDA Software Subsidy: 30%-50% subsidy for EDA software used in the R&D of chips at 14nm and below.
- Major Project Support: For projects that break through “bottleneck” technologies, the support ratio can reach up to 30% of the project’s new investment, with a maximum amount of 1 billion yuan.
- Talent Policy: Special support for high-end overseas talents, with work permit approval shortened to 5 working days; personal income tax incentives for key technical personnel (actual tax burden ≤15%).
- Environmental Assessment Simplification: For projects not listed in the key catalog, the environmental assessment report can be simplified to a report form; projects that originally required a report form can adopt a notification commitment system for approval.
Contact Department: Lingang New Area Management Committee, High-tech Industry and Technological Innovation Department, with application time usually in the third quarter of each year.
4.3 Jiading District Integrated Circuit Policies
Jiading District focuses on smart sensors and automotive chips, providing high subsidies for automotive-grade certification.
- Automotive-Grade Certification: A subsidy of 50% of the actual certification fee (maximum 1 million yuan per year).
- EDA/IP Purchase, First Round of Wafer Fabrication, Testing Certification: A reward of 50% of the actual expenses incurred.
- Mergers and Acquisitions: A support of 10% of the acquisition amount for successfully acquiring related enterprises in the domestic and foreign industrial chain, with a maximum of 1 million yuan.
Application Guide: The application time for 2025 is from February 20, 9:00 to March 20, 17:00, through the Jiading District Industry Policy Support Application System online. Contact Department: Jiading District Economic Committee, specific contact with each town’s economic development office (e.g., Teacher Zhang from Malu Town 59158728).
4.4 Putuo District “Suhua Chip Bay” Special Policy
Putuo District focuses on integrated circuit design, creating the “Suhua Chip Bay” brand, with policies effective from January 1, 2025:
- Support for Startups: For integrated circuit design enterprises established within five years, a one-time grant of up to 3 million yuan is available for those that receive professional investment.
- EDA/IP Purchase Support: A subsidy of up to 50% of the actual payment, with a maximum of 2 million yuan per year.
- Wafer Fabrication Support: MPW wafer fabrication subsidy of 40% (maximum 2 million yuan per year); first full-mask wafer fabrication subsidy of 40% (maximum 3 million yuan per year).
- Automotive-Grade Certification: A subsidy of 50% of the actual amount incurred, with a maximum of 1 million yuan per year.
Industry Layout: Forming a “one core leading, three parks collaborating” pattern, with Changfeng Science and Technology Valley as the core area, focusing on cutting-edge fields such as automotive-grade chips and artificial intelligence chips. Contact Department: Putuo District Science and Technology Committee, inquiries can be made through the “Putuo E-Enterprise” investment service platform.
4.5 Other Regional Characteristic Policies
- Yangpu District: Relying on university resources to promote integration of industry, academia, and research, providing support for R&D investment at 10%-30%, with a maximum of 2 million yuan. Contact Department: Yangpu District Science Committee
- Qingpu District: Focused on memory chips, supporting mergers and acquisitions in the industrial chain, providing support of 10% of the acquisition amount, with a maximum of 1 million yuan. Contact Department: Qingpu District Economic Committee
- Songjiang District: Providing support in semiconductor materials and other fields, with a maximum support of 5 million yuan for new material R&D and industrialization projects. Contact Department: Songjiang District Economic Committee
5 National and Municipal Park Policies
5.1 Zhangjiang Science City
As the core source of Shanghai’s integrated circuit industry, Zhangjiang Science City offers distinctive park policies:
- Cross-Border R&D Tax Exemption: Importing EDA software/testing equipment through the “Free Trade Zone Bonded R&D” model, exempt from customs duties + value-added tax.
- Talent Individual Income Tax Subsidy: Key technical personnel’s actual tax burden can be reduced to no more than 15%.
- Explorer Program: Applications are accepted in three batches each year in March, June, and September, with funds disbursed in stages based on R&D progress.
Contact Department: Zhangjiang Science City Management Committee, Innovation and Entrepreneurship Department, applications can be submitted through the “Zhangjiang Online” platform.
5.2 Lingang New Area Integrated Circuit Industry Park
The Lingang New Area Integrated Circuit Industry Park provides comprehensive support around the construction of the “Oriental Chip Port”:
- Equipment Subsidy: A subsidy of 15% on the purchase of advanced equipment such as ASML EUV (must commit not to relocate for 5 years).
- Green Channel: Providing environmental assessment simplification, fast customs clearance, and other facilitation measures for integrated circuit enterprises.
- Application Scenarios: Opening local application scenarios for intelligent connected vehicles, intelligent manufacturing, etc., supporting demonstration applications of chip products.
Contact Department: Lingang New Area Management Committee, High-tech Industry and Technological Innovation Department.
5.3 Other Characteristic Parks
- Caohejing Development Zone: Focusing on integrated circuit design, providing incubation space, testing platforms, and other professional services.
- Jiading Smart Port: Focusing on automotive electronic chips, creating a automotive-grade testing and certification platform, providing one-stop services.
- Puxi Intelligent Valley: Focusing on integrated circuit equipment materials, providing customized standard factory buildings, R&D expense subsidies, and other support.
6 Policy Application and Compliance Guidelines
6.1 High-Tech Enterprise Certification and Maintenance
Chip enterprises applying for high-tech enterprise status can enjoy a corporate income tax rate of 15%. After certification, it is essential to maintain:
- Annual Report: Submit the annual development status report on the “High-Tech Enterprise Certification Management Work Network” before the end of May each year.
- Qualification Maintenance: Ensure that core indicators such as R&D expense ratio, high-tech income ratio, and proportion of technical personnel continue to meet standards.
- Re-certification: High-tech enterprise qualifications are valid for three years, and re-application is required upon expiration.
6.2 Detailed Policy Application Process
The application for integrated circuit industry policies generally follows these steps:
- Policy Interpretation: Carefully study the application guidelines to confirm that the enterprise meets the basic conditions and support directions.
- Material Preparation: Prepare core materials such as enterprise licenses, intellectual property certificates, audit reports, relevant contracts, and invoices.
- System Application: Fill out the application online through the designated platform of each district (e.g., Jiading District Industry Policy Support Application System).
- Paper Submission: Print and bind paper materials as required, and submit them to the designated address within the specified time.
- Review and Publicity: The competent department organizes reviews, and results are publicly announced online.
- Funding Disbursement: After public announcement without objections, the financial department disburses the funding.
6.3 Compliance Points and Risk Prevention
While enjoying policy benefits, enterprises must pay special attention to the following compliance points:
- Foreign Investment Ratio Limit: If the foreign investment ratio exceeds 50% during the tax exemption period, the previously exempted tax must be repaid.
- Relocation Constraints: If the enterprise relocates out of Shanghai within 5 years after receiving subsidies, it must return the subsidy and pay a 20% penalty.
- Material Authenticity: Responsible for the authenticity of the materials and data provided; false declarations will be seriously dealt with.
- Regular Reporting: During the validity period of the list, any significant changes such as name changes, splits, or mergers must be reported within 45 days.
6.4 Important Application Timeline for 2025
Table: Important Application Time Nodes for Shanghai’s Chip Industry Policies in 2025
| Policy Level | Application Project | Application Time | Responsible Department |
|---|---|---|---|
| National Level | Review of Integrated Circuit Enterprise List | September 25-30, October 9-14 | Municipal Economic and Information Commission |
| Shanghai Municipal Level | Strategic Emerging Industry Special | Usually in the first and third quarters | Municipal Economic and Information Commission, Municipal Development and Reform Commission |
| Pudong New Area | Integrated Circuit Special (First Batch) | February-March 2025 | Pudong Economic and Information Commission |
| Pudong New Area | Integrated Circuit Special (Second Batch) | July 2025 | Pudong Economic and Information Commission |
| Jiading District | Integrated Circuit Industry Policy | February 20-March 20 | Jiading District Economic Committee |
| Putuo District | “Suhua Chip Bay” Special | Year-round acceptance, batch review | Putuo District Science Committee |
7 Summary and Outlook
During the “14th Five-Year Plan” period, Shanghai’s integrated circuit policies will show new trends:
- Integration of AI and Chips: Support for “AI-enabled R&D innovation”, building an AI-empowered integrated circuit material innovation system.
- Green Manufacturing: Enterprises with processes above 65nm must complete “carbon footprint certification” (Lingang pilot).
- Chain Leader Cultivation: Implementing a “chain leader + chain length” dual-chain drive, selecting leading enterprises to form cross-domain tackling fleets.
- Yangtze River Delta Collaboration: Promoting mutual recognition of testing reports, compressing review time to 60 working days as a routine.
Urgent Reminder: A new round of integrated circuit enterprise list review will be launched in the fourth quarter of 2025, and enterprises are advised to complete the preparation of process node proof materials, verification of R&D personnel’s social security payment records, etc., before the end of September. This manual is based on publicly available policies as of October 2025, and specific implementation is subject to the latest interpretations from each policy issuing unit. Enterprises are strongly advised to confirm application requirements and timelines with the relevant responsible departments before applying to ensure smooth enjoyment of policy benefits.