Government support urged in China’s chip sector

%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20needs%20to%20enhance%20support%20for%20the%20domestic%20chip%20sector%2C%20an%20academic%20has%20warned%2C%20after%20it%20emerged%20that%20the%20country%20spends%20more%20on%20importing%20these%20electronic%20fundamentals%20than%20it%20does%20on%20importing%20oil.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20spends%20more%20than%20200%20billion%20U.S.%20dollars%20buying%20imported%20chips%20annually%2C%20according%20to%20figures%20released%20at%20an%20information%20industry%20forum%20that%20concluded%20on%20Sunday%20in%20north%20China%27s%20Shanxi%20Province.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22China%20should%20increase%20investment%20to%20boost%20research%20and%20development%20for%20domestically%20made%20chips%20if%20it%20wants%20to%20achieve%20sustainable%20development%20in%20the%20sector%2C%22%20Ni%20Guangnan%2C%20with%20the%20Chinese%20Academy%20of%20Engineering%2C%20urged.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20chip%20sector%2C%20widely%20seen%20as%20a%20core%20of%20the%20information%20industry%2C%20is%20of%20increasing%20concern%20to%20industry%20insiders%20in%20China%20owning%20to%20the%20huge%20reliance%20on%20foreign%20brands.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20manufactures%20about%2077%20percent%20of%20the%20world%27s%20mobile%20phones%2C%20but%20domestically%20made%20cellular%20chips%20are%20used%20in%20less%20than%203%20percent%20of%20them.%20Similar%20situations%20can%20be%20found%20in%20made-in-China%20computers%20and%20TV%20sets%2C%20according%20to%20a%20State%20Council%20report%20published%20in%20late%202014.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22In%20many%20areas%2C%20we%20lack%20core%20technology%20such%20as%20chips%2C%22%20said%20Zou%20Xuecheng%2C%20with%20the%20Research%20Center%20for%20Integrated%20Circuit%20Design%20in%20the%20central%20province%20of%20Hubei.%20%22So%20even%20though%20China%20is%20a%20manufacturing%20powerhouse%2C%20we%20only%20get%20a%20very%20small%20share%20of%20the%20total%20revenue.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EZou%20attributed%20the%20stagnant%20development%20of%20Chinese%20chip%20makers%20to%20high%20rates%20of%20tax.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EUnder%20current%20policies%2C%20China%27s%20chip%20makers%20need%20to%20submit%20a%2010-percent%20income%20tax%20and%205-percent%20business%20tax%2C%20far%20more%20than%20their%20competitors%20pay%20abroad.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ENi%20said%20the%20chip%20sector%20is%20both%20money-%20and%20technology-intensive%2C%20and%20that%20its%20development%20desperately%20needs%20government%20support.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20government%20should%20guide%20chip%20manufacturers%20by%20building%20financing%20platforms%20and%20encouraging%20innovation%2C%20if%20it%20wants%20to%20see%20sound%20development%20in%20the%20sector%2C%22%20the%20academic%20added.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China%20Economic%20Net%29%3C/FONT%3E%3C/P%3E