Loss of chip production capacity in Malaysia? Vietnam snatches away electrical orders? It doesn't exist! There are many chips in Shanghai's processing and trade. The localization rate | Southeast Asia | Vietnam | OEM | chip | transfer | production capacity | processing and trade | Shanghai
Faced with shrinking foreign demand and a decrease in overseas orders, the total import and export value of processing trade in Shanghai's customs area reached 191.742 billion yuan in the first half of this year, still achieving a growth of 6.4%. According to the analysis of Shanghai Customs, the reason why Shanghai's processing trade can maintain growth is related to its high added value and long industrial chain. The multiple convenient policies introduced by import and export regulatory authorities have also contributed to the high-quality development of Shanghai's foreign trade.
Group bonded is a new policy being innovatively piloted in Shanghai, which refers to the free and convenient circulation of bonded materials and non priced equipment between different companies under the same group, without being inspected in principle. For example, Shanghai Advanced Semiconductor and Jita Semiconductor both belong to the same group, but one is located in the Caohejing Development Zone and the other is in the Lingang New Area. They can enjoy the convenience of exchanging bonded materials for processing, allowing the Shanghai integrated circuit industry to hold more chips to compete with Malaysia and other regions. In the view of Wang Qingjun, the customs manager of Jita Semiconductor, this is a huge change in thinking - for the "three come and one make up" policy, customs used to regulate contracts and orders as a unit, and then developed into enterprises as a unit. "Nowadays, with enterprise groups as a unit, this change reflects that regulatory authorities are increasingly understanding the industry and getting closer to the actual needs of enterprises."
![Loss of chip production capacity in Malaysia? Vietnam snatches away electrical orders? It doesn't exist! There are many chips in Shanghai's processing and trade. The localization rate | Southeast Asia | Vietnam | OEM | chip | transfer | production capacity | processing and trade | Shanghai](https://a5qu.com/upload/images/e7973631eee8a677af6b16c96ef89472.jpg)
Pudong Customs conducts collaborative control and inspection of imported integrated circuit raw materials.
In addition to the group's bonded pilot program, there is also a "1+N" cluster cultivation and certification model based on industrial and supply chains. For example, in the shipbuilding industry, not only leading enterprises such as Jiangnan Changxing and Hudong Zhonghua in Shanghai can enjoy bonded services, but many on chain shipyards in the Yangtze River Delta are also included. Under the encouragement of this new policy, in the first half of this year, the total import and export value of processing and trade of enterprises under China Shipbuilding Corporation Limited was 25.535 billion yuan, a year-on-year increase of 86%. This year, the number of orders has reached 77.
![Loss of chip production capacity in Malaysia? Vietnam snatches away electrical orders? It doesn't exist! There are many chips in Shanghai's processing and trade. The localization rate | Southeast Asia | Vietnam | OEM | chip | transfer | production capacity | processing and trade | Shanghai](https://a5qu.com/upload/images/cdee19846497b8e18957b83f7a1f2358.jpg)
Customs officers conduct on-site inspections of imported materials and components used in China's first large-scale cruise ships.
Can contract manufacturing companies flexibly respond to vague and ever-changing overseas demands? In Shanghai, this answer is affirmative. Shanghai Senzhong Electric Appliances, an old factory in Songjiang, has enjoyed the "non matching of incoming materials" policy launched by Songjiang Customs, allowing enterprises to timely purchase incoming materials in advance before fully finalizing overseas customer orders, and also resisting the risk of fluctuations in international raw material prices. Faced with ambiguous attitudes from customers, companies can also adjust the quantity of incoming materials as needed. This adjustment can be made either by modifying the original processing trade manual or by adding a new processing trade manual, and both methods can be used for normal verification. These flexible and adaptable policies have given Shanghai Senzhong Electric an advantage in competing with potential Vietnamese competitors for orders. Meanwhile, facing the uncertainty of overseas orders, many export companies are also expanding their domestic sales channels. According to Sun Zhiwei, Senior Customs Manager of BASF Greater China, the company's domestic sales tax increased by 49.6% year-on-year in the first half of this year. This growth largely relies on customs simplifying the declaration procedures for processing trade and domestic sales, and relaxing the time limit for centralized tax payment from "month" to "quarter", providing great convenience to enterprises.
![Loss of chip production capacity in Malaysia? Vietnam snatches away electrical orders? It doesn't exist! There are many chips in Shanghai's processing and trade. The localization rate | Southeast Asia | Vietnam | OEM | chip | transfer | production capacity | processing and trade | Shanghai](https://a5qu.com/upload/images/706c532330c9f40bdee2c5f1dc7e9d1a.jpg)
In recent years, Guangda Group's subsidiary Gong Computer Co., Ltd., a veteran enterprise in the Songjiang Comprehensive Bonded Zone, has also flexibly carried out domestic sales.
Wei Wei, Director of the Inspection Department of Shanghai Customs, said that from traditional manufacturing such as textile and clothing, electronic assembly, to integrated circuits, domestic cruise ships, new energy vehicles, etc., Shanghai's processing and trade are constantly moving towards the high-end of the industrial chain, and the proportion of low value-added and labor-intensive products is continuously declining. According to statistics, the proportion of high-tech product exports under the processing trade category in Shanghai reached 70.4% last year. In addition, Shanghai's processing and trade have also achieved significant results in carrying advanced overseas technologies and promoting the localization rate of key industries. When Tesla's new energy vehicles were put into production in Lingang in 2019, the proportion of imported parts exceeded 50%. However, now the localization rate of parts has exceeded 95%, and the export of finished vehicles has shifted from processing trade to general trade.
![Loss of chip production capacity in Malaysia? Vietnam snatches away electrical orders? It doesn't exist! There are many chips in Shanghai's processing and trade. The localization rate | Southeast Asia | Vietnam | OEM | chip | transfer | production capacity | processing and trade | Shanghai](https://a5qu.com/upload/images/a6332613458f9a9a4256bf4db6194d6a.jpg)