This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.

Notice of the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin on Issuing Several Measures for Promoting the Development of the Integrated Circuit Industry in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

All bureaus under the Executive Committee:

The Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin has deliberated and approved the Several Measures for Promoting the Development of the Integrated Circuit Industry in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. These Measures are hereby issued to you for diligent implementation. Should any issues arise during implementation, please promptly report the issues to the Economic Development Bureau of the Cooperation Zone.

Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

July 25, 2022

Several Measures for Promoting the Development of the Integrated Circuit Industry in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

For the purpose of implementing the Master Plan for the Construction of Guangdong-Macao In-Depth Cooperation Zone in Hengqin, vigorously developing the integrated circuit industry, accelerating the establishment of a microelectronics industry chain featuring unique chip design, testing, and inspection, and promoting the moderate diversification of Macao’s economy, these Measures are hereby formulated in accordance with the Outline for Promoting the Development of the National Integrated Circuit Industry, the Notice by the State Council on Issuing Several Policies for Promoting the High-Quality Development of the Integrated Circuit Industry and the Software Industry in the New Era (No.8 [2020] of the State Council), and the Notice of Issuing Several Opinions on Accelerating the Development of the Semiconductor and Integrated Circuit Industry in Guangdong Province (No.2 [2020] of the General Office of the People’s Government of Guangdong Province), while taking into full consideration the actual circumstances of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”).

Chapter 1 Support for Enterprise Development

Article 1. Support for Enterprise Establishment

1. Paid-in Capital Incentives

For newly established or newly relocated enterprises, a one-time reward of up to 5 million yuan shall be granted, based on 10% of the actual paid-in capital in monetary form, provided that the paid-in capital is no less than 10 million yuan.

For enterprises that were already established in the Cooperation Zone prior to the implementation of these Measures, a one-time reward of up to 5 million yuan shall also be granted for any additional paid-in capital in monetary form, provided that this additional capital is no less than 10 million yuan after the implementation of these Measures.

2. Headquarters Project Incentives

Integrated circuit listed companies, recognized leading enterprises in various segments of the domestic integrated circuit industry (the top ten in each field as published by the China Semiconductor Industry Association in the past three years), specialized and innovative “little giant” enterprises recognized by the Ministry of Industry and Information Technology, and integrated circuit unicorn companies that establish their headquarters or regional headquarters in the Cooperation Zone shall be eligible for one-time rewards of 20 million yuan and 10 million yuan, respectively. These rewards shall be disbursed in two installments at a 4:6 ratio.

For enterprises that were established in the Cooperation Zone prior to the implementation of these Measures and meet the criteria for headquarters or regional headquarters, equivalent rewards shall be granted in accordance with this provision.

Article 2. Support for Enterprise Office Space

1. Rent Subsidies

For enterprises renting office space in the Cooperation Zone, rent subsidies shall be provided at a rate not exceeding 100% of the rent appraisal price by a third-party professional institution and up to 100 yuan per square meter per month, with a maximum subsidy area of 2,000 square meters per enterprise.

2. Purchase Subsidies

For enterprises included in the statistics database of enterprises above the designated scale that purchase office space in the Cooperation Zone, a one-time subsidy of up to 10 million yuan shall be granted, based on 10% of the actual purchase price. This subsidy shall be disbursed in two installments at a 4:6 ratio.

Article 3. Support for Enterprise R&D and Innovation

1. R&D Expense Subsidies

For enterprises conducting on-site R&D in the Cooperation Zone, an annual subsidy of up to 5 million yuan shall be provided based on a certain proportion of their self-invested R&D expenses.

2. Multi-Project Wafer (MPW) and First-Run Engineering Tape-Out Subsidies

(1) For enterprises or research institutions conducting MPW tape-outs, an annual subsidy of up to 5 million yuan shall be provided, calculated at 70% of the tape-out expenses.

(2) For enterprises or research institutions conducting full-mask first-run tape-outs prior to mass production, an annual subsidy of up to 30 million yuan shall be provided, based on 50% of the tape-out expenses. For processes below 14nm, the annual subsidy shall be capped at 25 million yuan; for processes below 28nm, the annual subsidy shall be capped at 15 million yuan; for other processes, the annual subsidy shall be capped at 8 million yuan.

3. IP Purchase, Reuse, and R&D Subsidies

(1) For enterprises or research institutions purchasing IP to conduct R&D on high-end chips, advanced, or specialized processes, and upon recognition, an annual subsidy of up to 3 million yuan shall be provided, calculated at 30% of the actual expenses.

For those purchasing IP developed by enterprises within the Cooperation Zone for such R&D, the annual subsidy cap shall be increased to 5 million yuan.

(2) For enterprises or research institutions reusing IP from the integrated circuit public service platform for high-end chip, advanced, or specialty process R&D, an annual subsidy of up to 1 million yuan shall be provided, calculated at 50% of the actual expenses.

(3) For enterprises engaged in IP R&D, an annual subsidy of up to 15 million yuan shall be provided, calculated at 30% of their self-invested R&D expenses.

4. EDA Tool Purchase, Rental, and R&D Subsidies

(1) For enterprises or research institutions purchasing EDA tool software (including software upgrade costs), an annual subsidy of up to 3 million yuan shall be provided, calculated at 30% of the actual expenses.

For those purchasing EDA tool software (including software upgrade costs) developed by enterprises within the Cooperation Zone, the annual subsidy cap shall be increased to 5 million yuan.

(2) For enterprises or research institutions renting EDA tool software from the integrated circuit public service platform, an annual subsidy of up to 3 million yuan shall be provided, calculated at 50% of the actual expenses.

(3) For enterprises engaged in the R&D of EDA tool software, an annual subsidy of up to 15 million yuan shall be provided, calculated at 50% of their self-invested R&D expenses.

5. Support for Testing and Verification

(1) For entities providing testing and verification services for integrated circuit wafers or chip products in terms of functionality, performance, reliability, compatibility, and failure analysis in the Cooperation Zone, an annual subsidy of up to 5 million yuan shall be provided, calculated at 50% of the actual revenue from providing such services to enterprises or institutions in Macao, the Cooperation Zone, or Zhuhai (with no equity relationship).

(2) For enterprises engaged in the R&D of equipment (including core components) and consumables related to testing and inspection in the Cooperation Zone, upon recognition, an annual subsidy of up to 5 million yuan shall be granted, calculated at 50% of the enterprise’s self-funded R&D expenses

Article 4. Support for Enterprise Growth

1. Rewards for Main Business Revenue

Enterprises involved in integrated circuit design, equipment (including core components), materials, and EDA tool development that are included in the statistics database of enterprises above the designated scale shall receive one-time rewards based on their main business revenue upon their first application. Specifically, those whose main business revenue reaches 50 million yuan, 100 million yuan, 300 million yuan, 500 million yuan, 1 billion yuan, 1.5 billion yuan, and 2 billion yuan shall be granted a one-time reward of 1 million yuan, 2 million yuan, 3 million yuan, 5 million yuan, 6 million yuan, 8 million yuan, and 10 million yuan respectively.

Integrated circuit manufacturing and packaging/testing enterprises that are included in the statistics database of enterprises above the designated scale, shall receive one-time rewards based on their main business revenue upon their first application. Specifically, those whose main business revenue reaches 100 million yuan, 300 million yuan, 500 million yuan, 1 billion yuan, 1.5 billion yuan, 2 billion yuan, and 3 billion yuan shall be granted one-time rewards of 1 million yuan, 2 million yuan, 3 million yuan, 5 million yuan, 6 million yuan, 8 million yuan, and 10 million yuan, respectively.

For enterprises that have received the above incentives and subsequently achieve higher revenue thresholds, an additional incentive shall be granted based on the difference between the new threshold and the previous one.

Enterprises are encouraged to allocate a certain proportion of the incentive funds to provide personal bonuses for core management personnel, R&D staff, and other key contributors.

2. Rewards for Main Business Revenue Growth

Enterprises engaged in integrated circuit design and EDA tool R&D that are included in the statistics database of enterprises above the designated scale shall receive annual rewards based on 2% of the year-on-year growth in their main business revenue, provided that the growth rate is not less than 20%. For enterprises involved in integrated circuit manufacturing, packaging, testing, equipment (including core components), and materials, if the main business revenue increases by no less than 10% year-on-year, an incentive shall be granted at 2% of the year-on-year revenue growth. The maximum annual incentive for a single enterprise shall be 5 million yuan.

Enterprises are encouraged to allocate a certain proportion of the incentive funds to provide personal bonuses for core management personnel, R&D staff, and other key contributors.

3. Rewards for Industry Awards

Enterprises awarded the “China Chip” award by CCID Research Institute, the “China Semiconductor Innovative Product and Technology” title by the China Semiconductor Industry Association, or the “Integrated Circuit Industry Technology Innovation Award” by the China Integrated Circuit Innovation Alliance shall receive a one-time incentive of 300,000 yuan.

Chapter 2 Support for Talent Introduction and Training

Article 5. Support for Talent Introduction

For R&D personnel and senior management who have signed a labor contract of three years or more with integrated circuit enterprises or research institutions and who work on-site in the Cooperation Zone, an annual incentive shall be provided based on their total wage and salary income from the previous year. The specific incentive standards are as follows:

(1) For an annual salary of 300,000 (inclusive) to 500,000 yuan (exclusive), a reward of 100,000 yuan shall be granted;

(2) For an annual salary of 500,000 yuan or above, a reward of 150,000 yuan shall be granted.

The number of senior management personnel eligible for this reward in a single enterprise shall not exceed 10% of the total number of employees and shall not exceed 10 individuals.

Article 6. Support for Talent Training

For entities recognized as talent training bases for integrated circuits in the Cooperation Zone, an annual subsidy of 1 million yuan shall be provided. For R&D personnel who are trained at these bases and subsequently hired by integrated circuit enterprises or research institutions in the Cooperation Zone, an annual reward of 30,000 yuan per person shall be granted, up to a maximum of 1 million yuan per year per base. Enterprises or research institutions that provide employee training at these recognized training bases shall receive annual subsidies of up to 1 million yuan, calculated at 50% of the actual training expenses.

Additionally, enterprises or research institutions that accept interns from integrated circuit-related majors at universities inside and outside the Chinese mainland shall be eligible for an annual subsidy of up to 1 million yuan, calculated at 5,000 yuan per person per month.

Chapter 3 Support for Platform Development

Article 7. Support for Public Service Platform Development

Subsidies of up to 5 million yuan per year shall be provided to enterprises or institutions that establish public service platforms for the integrated circuit industry. These platforms should offer public technical support through specialized management and services, including but not limited to pilot-scale R&D, integrated circuit design, EDA tool access, IP sharing, MPW, rapid packaging and testing, and failure and reliability analysis, testing, verification, and certification of integrated circuit products, equipment, and materials. The subsidy amount shall be calculated based on 30% of the actual investment in platform instruments and equipment (including software).

For innovation platforms such as manufacturing innovation centers, technology innovation centers, and industry innovation centers that receive national or provincial financial support, matching support equivalent to 100% of the national or provincial funding shall be provided.

Article 8. Support for Park Operation Platform Development

Support shall be provided for the establishment of specialized integrated circuit parks within the Cooperation Zone, aimed at attracting high-quality enterprises and high-end talent.

1. Support for Creating “Zero-Cost Startup Spaces”

Support shall be provided for the creation of “Zero-Cost Startup Spaces” within specialized integrated circuit parks, serving entrepreneurs, startup teams, and early-stage enterprises by offering rent-free spaces.

For approved “Zero-Cost Startup Spaces”, a rent subsidy shall be provided to the park operation entity, based on 100% of the rental rate assessed by a third-party professional agency, up to 100 yuan per square meter per month, with a maximum subsidized area of 1,000 square meters.

2. Operation Rewards

A subsidy of 5 million yuan shall be granted to the operating institution of an industrial park whenever the park’s incremental indicators meet the following criteria, with a maximum total subsidy of 10 million yuan for the same operating institution:

(1) The main business revenue of newly registered or relocated integrated circuit enterprises, physically operating in the park, increases by 1 billion yuan;

(2) The number of new employees physically working in the park increases by no less than 350, of whom at least 200 are R&D personnel, with no fewer than 20 R&D personnel earning an annual salary of over 800,000 yuan.

Article 9. Support for Building Industry Exchange Platforms

Support and encouragement shall be provided to renowned domestic and international academic institutions, professional organizations, and various innovation entities within the Cooperation Zone to host or permanently establish influential academic conferences, professional forums, technical seminars, exhibitions, and similar activities in the Cooperation Zone. For eligible activities, financial support shall be provided at 40% of the actual expenses incurred, with a maximum of 6 million yuan per event.

Industry associations established within the Cooperation Zone that organize influential industry events with at least 15 participating units and 30 participants shall receive an annual subsidy of up to 1 million yuan. The subsidy is calculated at 20,000 yuan per event.

Chapter 4. Support for Guangdong-Macao Collaborative Innovation

Article 10. Support for Macao Talent

For Macao residents or individuals holding a bachelor’s degree or higher from a Macao university who apply for talent incentives under these Measures, the incentive amount shall be 1.5 times the standard amount specified in these Measures.

Article 11. Collaborative Development with Macao

Full-time R&D personnel employed by Macao companies with an affiliation to enterprises in the Cooperation Zone may apply for talent incentives in accordance with these Measures. For projects that receive scientific and technological grants from the Government of the Macao Special Administrative Region, a matching grant of up to 8 million yuan per project shall be provided, calculated at 50% of the grant amount.

Article 12. Collaborative Development with Zhuhai

Support shall be provided for major integrated circuit projects to establish their headquarters or R&D centers in the Cooperation Zone and to construct production, manufacturing, and packaging/testing bases in Zhuhai. Specific support measures shall be determined through consultation between the Executive Committee of the Cooperation Zone and the Zhuhai Municipal People’s Government.

Chapter 5. Supplementary Provisions

Article 13. These Measures shall come into effect on January 1, 2022, and shall remain in effect until December 31, 2024.

Article 14. In the event of any conflict between these Measures and national laws, regulations, or relevant provisions of Guangdong Province, the national laws, regulations, and relevant provisions of Guangdong Province shall prevail.

Article 15. These Measures shall be interpreted by the Executive Committee of the Cooperation Zone, and the implementation rules shall be formulated and enforced by the Economic Development Bureau of the Cooperation Zone.