New semiconductor guideline in the works

A new policy on semiconductors currently under development could include tax exemptions or reductions in an area considered vital for China's high-tech industry, state media reported. China already has a guideline, developed in 2000, to encourage the semiconductor and software industries but value-added tax levels that gave advantage to domestic products sparked complaints from the US, Japan and the EU. Industry officials said the National Development and Reform Commission has organized a fresh round of consultations to figure out a policy to develop the semiconductor business in the country. Several rounds of talks have already been held and industry watchers believe ministries and industry groups are quite close to an agreement on the guideline.