By Xinyi Li, EDITOR
On May 22, workers in a plant located in Qijiang Industrial Park were busy. Huaxin Intelligent Manufacturing Co., Ltd. (Huaxin) decided to establish its plant in Qijiang Industrial Park, filling up the void of chip production in Qijiang and marking the synchronous progress in the upgrading of traditional industries and fostering strategic emerging industries in the old industrial area.
“On April 29, Huaxin Intelligent Microelectronics (Chongqing) Co., Ltd. (Chongqing Branch) started trial production in Qijiang District. It has a broad range of products including power control module chips for satellites. Its annual output value is estimated to reach RMB 3 billion in 2021,” said the principal of the Economic and Information Commission of Qijiang District.
Headquartered in Shenzhen, Huaxin is mainly engaged in chip production, research, and development, design and packaging as well as system technology development, product production and sales involving software technology, control system, integrated circuit board, and electronic products. Its products are mainly sold in overseas markets and exported to Germany, the US, South Korea, and India.
A power control module developed by Huaxin mainly for low-orbit micro-satellites has been successfully applied to launch with satellites. In the future, Chongqing Branch’s chips are also expected to launch with satellites.
On May 22, Ministry of Finance and State Administration of Taxation issued a notice that profitable IC design and software enterprises could enjoy the preferential policy of exemption of the enterprise income taxes for the first two years and a half reduction for the third to fifth year.
The tax preferential policy is a huge boon to reduce the burden on Chongqing’s IC design and software enterprises. For one thing, those companies can save more money to input on R&D. For another, the move promotes the ROI of those companies, thus stimulating them to increase investment to enhance the independent innovation capability.