China government’s effort to counter the global slowdown in IC design industry

The financial recession have great effect on many counties especially the major economies in the world. As a globalized industry, the IC design industry could neither escape from the economic impact; anyway, relying on the steady domestic market, we are still fine here in China. But see from the other side, the financial crisis could also be an opportunity for us just as what Japanese have done before. Focusing on new product and technology development, Japanese IC industry used the economic crisis to take up the second position in the world today. So why should we face the crisis negatively?

To respond the world economic situation and support the development of IC design companies in China, the central government has had several conferences discussing about the global situation and how to counter the slowdown of IC design industry. Under this situation, Binhai Integrated Circuit Design Service center (BICDS) is set up to help the IC design companies get through the tough time. BICDS is a non-profit organization backed by the government. At present what the IC companies need to do most is to cut cost and develop new products suitable for the market. To realize the goal, the companies need the support of the government. And this is what BICDS do. On one hand, BICDS supplies favorable policies including R&D subsidies, MRP subsidies, value-added tax subsidies as well as many other subsidies, to help the companies cut cost; on the other hand, BICDS supply technical support for the companies for free, including software and hardware service, and the most advanced software of EDA design..

Apart from the above advantages, BICDS is set up in Tianjin, where there is a good investment environment for IC design companies. Tianjin has a huge potential market for chips. According to statistics, the amount of phones produced in Tianjin makes up of 24% of that in China. For every four phones in mainland, there is one produced in Tianjin. The amount of LCD produced in Tianjin adds up to 460,000, which comprises 10% of the total amount produced in China. Digital cameras produced in Tianjin are more than 4000,000, occupying about 8% percent of that in China. The amount of LSI is more than 570,000,000, about 5% of that of China. Apart from Motorola and Samsung, there are many companies related with IC design industry in Tianjin, which supply a good investing environment.

To learn more about BICDS, please visit http://www.bicds.org.


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