Semiconductor equipment costs 100 million US dollars per unit! How to reduce the financial burden on Chinese chip companies? Shanghai boldly explores pilot enterprises | Integrated Circuit | China

Release time:Apr 14, 2024 00:03 AM

On June 28th, the Shanghai Financial Leasing Service Integrated Circuit Industry Laboratory, jointly established by Bank of Communications Financial Leasing Co., Ltd., CMB Financial Leasing Co., Ltd., and Puyin Financial Leasing Co., Ltd., was unveiled in the Lingang New Area of the Shanghai Free Trade Zone. The laboratory will pilot the "Financial Leasing SPV Integrated Circuit Equipment Leasing Business", and at the unveiling ceremony, the first batch of business cooperation agreements will be signed nationwide.

In this pilot project, the Shanghai Banking and Insurance Regulatory Bureau supports three leasing companies to establish SPVs in the Lingang New Area and engage in business cooperation with high-quality integrated circuit enterprises such as Shanghai Litong Semiconductor and Geke Micro Co., Ltd. Through asset circulation, risk isolation, import tax burden reduction, and capital cost reduction, it provides more in-depth and comprehensive financial support and services for the sustainable development of integrated circuit enterprises.

Wu Jiong, Vice President of Puyin Financial Leasing, introduced that science and technology innovation enterprises need growth oriented and long-term financial support that covers the entire life cycle of the enterprise, and the characteristics of financial leasing are longer terms and more flexible scheme design. Science and technology innovation enterprises generally cannot provide fixed assets such as land and factories as collateral, and financial leasing has both financing and material properties.

"Financial leasing is very suitable for the needs of our integrated circuit enterprises." Zhao Lixin, Chairman of Geke Micro Co., Ltd., introduced that integrated circuit design enterprises are mostly light assets in the initial stage, but in the process of developing towards high-end and innovative processes, they need special manufacturing equipment, which is bound to develop towards heavy assets. But high-end equipment is very expensive. Taking lithography machines as an example, the cheapest ones cost 10 million US dollars, and some devices even cost 100 million US dollars per unit, causing a significant financial burden for enterprises. But this type of equipment is more cost-effective and suitable for leasing.

Zhao Lixin revealed that Gekewei may have a significant breakthrough in core components by the end of this year, and will require more equipment afterwards, estimated to require 1-2 billion US dollars. "Even through stock market financing, the pressure is too great, so we urgently hope to have financial leasing support and operate in a partially self owned and partially leased model in the future."

The reporter learned that the integrated circuit industry, as one of the key 100 billion level industries in the new Lingang District, has gathered 230 related enterprises, signed projects with a total investment scale of nearly 300 billion yuan, and fixed assets investment of more than 120 billion yuan. It has built a whole industrial chain integrating design, high-end manufacturing, equipment materials, advanced sealing and testing, and chip trade.

Yin Jun, Deputy Director of the Financial and Trade Department of the Lingang New Area Management Committee, told reporters that the SPV business in China's financial leasing industry is mainly concentrated in the fields of aircraft, ships, marine engineering, etc. This pilot business represents the first expansion of the SPV leasing scope in Shanghai Lingang, and is also aimed at better serving the development of the integrated circuit industry in the new area.

"The 'sandbox supervision' model adopted this time is to conduct risk assessment and strengthen communication with regulatory authorities during the pilot process of individual cases, without changing the existing relevant regulations on financial leasing. Yin Jun said, 'When the time is ripe, integrated circuit financial leasing may be included in the regulatory scope, which is expected to empower integrated circuit enterprises nationwide.'"

Why do people choose the suburban park in Shanghai as the "place where dreams start"?, Overseas students returning to China to start their own businesses | Entrepreneurship | Suburban areas
Why do people choose the suburban park in Shanghai as the "place where dreams start"?, Overseas students returning to China to start their own businesses | Entrepreneurship | Suburban areas

Although only 28 years old, Shandong young man Xue Yunhao is already a "veteran entrepreneur". After graduating from Loughborough University in the UK and returning to China, he has had two entrepreneurial experiences in other provinces and cities. For his third entrepreneurial venture, he set his sights on Qingpu in Shanghai. "The park is big and new, and the office environment is very good!" This is Xue Yunhao's first impression of Shanghai Qingpu Overseas Chinese Entrepreneurship Park. Having settled in the park for just over a month, Shanghai Shike Fun Culture and Technology Co., Ltd., founded by him, has entered the right track of development, and the incubated trendy toy brand is about to face the market. The reporter learned that in September last year, the Qingpu Innovation Park located in the Hongqiao Business District officially opened, and soon became a dream destination for "Xue Yunhao". In less than a year, the park has attracted nearly 50 entrepreneurial enterprises, and among the nearly 200 international students working hard in the park, the vast majority are master's students

It is expected that the new output value will be about 5 billion yuan after production, and 7 major industrial projects in Xinzhuang Industrial Zone will be concentrated in the manufacturing industry
It is expected that the new output value will be about 5 billion yuan after production, and 7 major industrial projects in Xinzhuang Industrial Zone will be concentrated in the manufacturing industry

On June 30th, the Xinzhuang Industrial Zone in Shanghai held a concentrated groundbreaking ceremony for major industrial projects in 2023. Seven manufacturing projects, including Foster, Junjian Junze, and Aohua Endoscopy, began construction simultaneously, involving major equipment, biopharmaceuticals, new materials, fine chemicals, and productive service industries. It is understood that the 7 projects under construction this time have a total investment amount of 1.868 billion yuan, covering a total area of 134.48 acres. Among them, four new land acquisition projects and three existing renovation and expansion projects are expected to increase taxes by about 400 million yuan and increase production value by about 5 billion yuan after production. All 7 projects are in line with Minhang's "4+4" industrial positioning. The Xinzhuang Industrial Zone has started construction on 7 industrial projects in the same area, making manufacturing a key driving force for the park's economic development, while promoting the high-end and intelligent manufacturing industry in Minhang

Why Shanghai's "Project" Continuously Rises, 30 Years of Method | Service | Shanghai
Why Shanghai's "Project" Continuously Rises, 30 Years of Method | Service | Shanghai

In summer, Yang Quan, a delivery rider from Lincang, Yunnan, has once again encountered the toughest delivery season of the year. However, his heart is steadfast: the "Warm New Nest" new employment group service station in front of the Zhaofeng Square in Zhongshan Park is a harbor for him and his colleagues to shelter from wind and rain throughout the year, regardless of the extreme cold or heat. This is one of the many "warm new nests" in Changning District. Yang Quan, born on the banks of the Lancang River and born in the 1990s, did not know that in the bustling city center of Shanghai, many people used to live in shabby houses, some of whom also faced insurmountable difficulties such as serious illness and unemployment. The Huayang Road Street in Changning District, where Zhaofeng Square is located, is one of them. 30 years ago, grassroots cadres in Huayang visited day and night to understand the living conditions of all the disadvantaged groups and helped them solve difficulties one by one. From then on, a person who understands people

Do young people face three job search dilemmas? Shanghai Jinshan Holds a Theme Day Event for Employment and Entrepreneurship of College Graduates | Entrepreneurship | Jinshan
Do young people face three job search dilemmas? Shanghai Jinshan Holds a Theme Day Event for Employment and Entrepreneurship of College Graduates | Entrepreneurship | Jinshan

On the afternoon of June 19th, the 2023 "Yangui Jinshan · Employment in the Bay Area" theme day for employment and entrepreneurship of college graduates in the annuity mountainous area was held at the Haikuo Dong'an Cultural and Creative Industry Park. A series of activities were held on site, including the release of employment brochures, sharing of employment and entrepreneurship experiences, high-quality enterprise roadshows and talent recruitment, display of employment work achievements, comprehensive launch of seedling raising ceremony, and special recruitment activities, attracting a large number of key enterprises, internship bases, and college students to attend. It is worth noting that 52 companies participated in the on-site job fair that day, providing 212 positions and recruiting 570 people, with salaries generally ranging from 7000 yuan to 10000 yuan; Nearly 300 people entered the venue, received 238 resumes, and initially reached employment intentions for 75 people. At the launch ceremony, a skit titled "You and I on the Road to Job Seeking" was performed,

The outdoor space of the China Maritime Museum is open for free at night for the first time, and the exhibition of maritime heavy equipment showcases the new ocean | China | Museum
The outdoor space of the China Maritime Museum is open for free at night for the first time, and the exhibition of maritime heavy equipment showcases the new ocean | China | Museum

On June 13th, under the guidance of the Shanghai Municipal Transportation Commission and the Shanghai Municipal Oceanic Bureau, the "Exploration of Deep Blue: China Ocean Science and Deep Diving Exhibition" jointly organized by the China Maritime Museum and the Shanghai Marine Management Affairs Center was officially launched at the China Maritime Museum. The exhibition will be held in the second temporary exhibition hall of the museum and will last until October 8, 2023. This exhibition is the second exhibition of the "Contemporary China Maritime Equipment Series Exhibition" launched by the China Maritime Museum, following the "Blue Ship Theory". The exhibition is divided into four parts: "Comprehensive Science Examination", "Professional Science Examination", "Special Science Examination", and "Guarding the Blue Ocean". From the perspectives of technology, equipment, and nature, the exhibition focuses on showcasing the brilliant achievements of contemporary China's marine science examination and deep diving industry, explaining the harmonious coexistence between humans and the ocean, strengthening ocean awareness education, and helping to promote marine culture