The municipal government of Kunshan in Jiangsu, a coastal province north of Shanghai, is striving to support integrated circuit design companies with up to 10 million yuan (US$1.57 million) in subsidies, Xinhua news agency reported.
For IC design firms that have good market prospects, the government will give up to one million yuan in special funds based on their technological level, scale and effectiveness.
Also, those companies that have a registered capital of more than 10 million yuan and meet the key development direction of the city, subsidies of up to 10 million yuan shall be given.
Meanwhile, the disconnection of the upstream and downstream of the industry, as well as the lack of joint development between the industry and other strategic emerging industries have always been a major problem plaguing the development of the semiconductor sector.
Thus, a subsidy of up to 10 million yuan will be given to manufacturers of semiconductor equipment and materials.