IC industry pushes reform and innovation deeper

The integrated circuit (IC) industry is a strategic, foundational, and leading sector that plays a crucial role in driving the transformation of manufacturing industries and enhancing national information security. During the "Twelfth Five-Year Plan" period, the Chinese government issued several key policies to promote the growth of the IC industry. In 2011, the State Council released the "Notice on Further Encouraging Certain Policies for the Development of the Software Industry and Integrated Circuit Industry," followed by the "National Integrated Circuit Industry Development Promotion Outline" in June 2014. In May 2015, the "Made in China 2025" strategy was introduced, along with various implementation policies from relevant departments. These measures significantly contributed to the development of the IC and broader semiconductor industry. Looking ahead, the next five years represent a critical transition period for the global IC industry, offering significant opportunities for China’s IC sector. To achieve the goals outlined in the "Outline," continuous innovation, technological upgrades, and industry expansion are essential. During the "Twelfth Five-Year Plan" period, China's IC industry maintained strong growth. In 2016, sales reached 433.55 billion yuan, representing a year-on-year increase of 20.1%. The industry also saw a rise in production, with 131.8 billion units produced, up 21.2% compared to the previous year. The average price per IC product was 3.29 yuan, an increase of 0.21 yuan. All three major sectors—design, wafer manufacturing, and packaging and testing—experienced rapid growth, with sales exceeding 100 billion yuan each. The industrial structure has become more balanced, with the IC design and manufacturing sectors gaining prominence. In 2016, the IC design industry achieved sales of 164.43 billion yuan, growing by 24.1%, while the manufacturing industry saw a 25.1% increase in sales, reaching 112.69 billion yuan. The packaging and testing sector reported sales of 156.43 billion yuan, up 13%. The industry is shifting toward the front-end segments, with the design sector becoming the largest contributor to overall sales. Geographically, the IC industry has become more evenly distributed across China. With increased investment in central and western regions, cities like Hefei, Wuhan, Chongqing, and Xi’an have emerged as key players. By 2016, the central and western regions accounted for 15.1% of the IC industry, matching the share of the Pearl River Delta region. Industrial agglomeration has also become more evident, with cities such as Shanghai, Beijing, Shenzhen, Nanjing, Hefei, and Chengdu emerging as major hubs. These cities have seen significant improvements in their IC industry strength, contributing to a stronger regional clustering effect. To remain competitive globally, China’s IC industry must continue to focus on innovation and reform. While progress has been made, challenges remain. Financial systems, talent development, and R&D strategies need further refinement. First, although government-led initiatives such as the "01, 02, 03 Special Projects" and the establishment of the "National IC Industry Investment Fund" have helped alleviate some bottlenecks, these efforts are still largely driven by the state rather than the market. A more enterprise-driven approach is needed, where companies take the lead in R&D and investment, supported by government facilitation rather than direct control. Second, tax policies should be adjusted to better support the IC industry. While high-tech companies benefit from reduced corporate income tax, this policy does not reflect the unique needs of IC firms, which require substantial R&D investment. Introducing tax incentives that allow companies to offset R&D expenses would encourage greater investment and foster a cycle of innovation. Third, talent and R&D systems must be strengthened. Domestic IC companies should focus on building internal R&D capabilities and training programs, rather than relying solely on mergers and acquisitions. Sustainable growth depends on self-reliance in technology and human capital. Only through these efforts, combined with financial support, can China establish a secure and independent IC industry.

Immersion Cooling


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1. +50% profit

Overclocking and fine-tuning with custom firmware effects from 40% to 50% more profit. It may require mechanical adaptation, additional overclocking PSU, or custom immersion firmware!

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Reducing the influence of high temperature, humidity, dust, and vibration can reduce the equipment failure rate by 80% and the equipment operation and maintenance cost by 85%

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Shenzhen YLHM Technology Co., Ltd. , https://www.apgelectrical.com