Recently, trade friction between China and the United States has exposed to some extent China's weakness in semiconductor core equipment. In the future, the country's strategic support for local semiconductor and semiconductor equipment enterprises is expected to be further strengthened.

In June 2014, the State Council issued the outline for promoting the development of the national integrated circuit industry, which pointed out the development goals: by 2020, the gap between the integrated circuit industry and the international advanced level will be gradually narrowed, the average annual growth rate of the whole industry's sales revenue will exceed 20%, the 16 / 14nm manufacturing process will be mass produced, the sealing and testing technology will be internationally advanced, the key equipment and materials will enter the international procurement system, and the technology will be basically completed By 2030, the main links of the industrial chain will reach the international advanced level, and a number of enterprises will enter the international first echelon. At the same time, the outline defines the development priorities of breaking through the key equipment and materials of integrated circuits, as well as the safeguard measures of establishing national industrial investment funds and implementing tax support policies.

In 2008, 2012 and 2018, the Ministry of Finance issued tax policies to reduce and exempt the income tax of integrated circuit manufacturing enterprises. For new enterprises or projects invested after 2018, ① for those with linewidth < 130nm and operation period of more than 10 years, the enterprise income tax shall be exempted in the first two years, and halved in the third five years; ② for those with linewidth < 65nm or investment amount of more than 15 billion yuan and operation period of more than 15 years, the enterprise income tax shall be exempted in the first five years Enterprise income tax shall be exempted in the first year and reduced by half in the sixth to tenth years.

In recent years, many provinces and cities in China have issued supporting policies or development plans for the integrated circuit industry, and local and national policies have formed a joint force to promote industrial upgrading. Multi dimensional industrial policy creates a favorable environment for semiconductor and equipment industry. Local equipment companies are facing historical opportunities. Huatai Securities believes that on the one hand, the rapid expansion of local semiconductor enterprises' technological innovation and capacity expansion under the support of national strategy has expanded the demand for semiconductor equipment in Chinese mainland. On the other hand, local equipment enterprises also benefit directly from the support of state and local policies. .