(Beijing Comprehensive News) The Chinese government issued an announcement that it provides tax reduction discounts on research and development expenses of integrated circuit companies and industrial parent machine companies, including technology companies and other aspects of chip manufacturing.

The Ministry of Finance of China on Monday (September 18) jointly issued an announcement on improving the proportion of R & D expenses of integrated circuits and industrial parent machine enterprises on Monday (September 18).Enterprise research and development innovation has promoted the high -quality development of the integrated circuit industry and the industrial parent machine industry.

The

Announcement pointed out that the actual R & D expenses incurred in the above -mentioned enterprises in the research and development activities will be based on the regulations, from January 1st to December 31st, 2027, and then follow the actual amount of 120%Deducts before tax; those who form intangible assets shall be amortized before tax at 220%of the cost of intangible assets during the above period.

In addition to the tax reduction discount, Reuters has quoted people familiar with the matter earlier this month that China will launch a new investment fund to raise 300 billion yuan for its semiconductor industry (RMB, the same below, about 56.1 billion yuan, about 56.1 billion yuanXinyuan) huge funds.

People familiar with the matter also said that the main investment field of the new fund will be chip manufacturing equipment, and the Ministry of Finance of China also plans to invest 60 billion yuan to the fund.

Chinese officials have emphasized at the 20th National Congress of the Communist Party of China that China needs to realize self -sufficiency in science and technology such as semiconductors.After the U.S. government has implemented a series of export control measures in the past few years, this demand has become more urgent.