Analysis of the Impact of Guangzhou's Integrated Circuit Industry Policies on Domestic Semiconductor Industry Chain Investment

Based on the policy materials and market data I have collected, I will systematically analyze the impact of Guangzhou’s integrated circuit industry policies on investment in the domestic semiconductor industry chain, and identify A-share semiconductor enterprises that directly benefit from these policies.

According to the Several Policies of Guangzhou on Promoting High-Quality Development of the Integrated Circuit Industry Through the Entire Chain During the “15th Five-Year Plan” Period (Draft for Comment), the main policy support directions include the following [1][2]:

Support Field	Policy Content	Subsidy Intensity
High-End Chip Design	Breakthroughs in high-end chip design such as CPU, GPU, FPGA	Key Support
Specialized Chip Development	RISC-V, automotive-grade, display driver, sensor, optical communication, 6G, etc.	Key Support
Wafer Fabrication for 28nm and More Advanced Processes	Subsidy for advanced process chip wafer fabrication costs	Up to 50%
Industrial Chain Collaboration	Entire industrial chain including design, manufacturing, materials, equipment and components, packaging and testing	Systematic Support

Guangzhou Development Zone’s Huangpu District, as the core industrial carrier area, has aggregated over 150 integrated circuit enterprises, accounting for nearly 90% of Guangzhou’s total, forming a complete industrial chain covering “chip design - wafer manufacturing - packaging and testing - equipment, materials and components - terminal applications” [3].

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Industrial Chain Segment	Benefit Level	Investment Logic
Chip Design Enterprises	★★★★★ (95%)	Directly enjoy wafer fabrication subsidies, reduce R&D costs, accelerate the localization process of high-end chips
Wafer Foundry Enterprises	★★★★☆ (88%)	Increased orders from design enterprises, boosted demand for local foundry services, improved capacity utilization
Semiconductor Equipment Enterprises	★★★★☆ (75%)	Capacity expansion drives equipment procurement, accelerating domestic substitution
Packaging and Testing Enterprises	★★★☆☆ (65%)	Growing demand for advanced packaging, with industrial chain supporting effects emerging
Semiconductor Material Enterprises	★★★☆☆ (55%)	Increased demand for high-end materials, with significant room for domestic substitution

:

• Guangdong Provincial Policy
  : For wafer fabrication of 28nm and more advanced processes, a subsidy of up to 30% of the costs is provided, with a maximum annual limit of RMB 10 million per entity [1]
• Guangzhou Municipal Policy
  : For MPW (Multi-Project Wafer) fabrication or first-time full-mask wafer fabrication, subsidies are provided in tiers at 40% of the costs, with a maximum annual limit of RMB 5 million per enterprise [2]
• Superposition Effect
  : Qualified enterprises can receive
  over 70% subsidy for wafer fabrication costs

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Enterprise	Stock Code	Main Products	Process Node	Policy Benefit Level	Investment Logic
Cambricon-U	688256	AI processor chips	7-14nm	★★★★★	Leading domestic AI chip enterprise, directly benefits from advanced process wafer fabrication subsidies
Hygon Information	688041	CPU/DPU processors	14-28nm	★★★★★	High-end processor design enterprise, core target for domestic substitution
Loongson Technology	688047	Domestic CPU processors	28nm	★★★★★	Independent and controllable CPU design, wafer fabrication subsidies reduce R&D costs
Verisilicon Microelectronics	688521	Semiconductor IP licensing	28nm and above	★★★★☆	Benefits from both IP licensing and design services

Enterprise	Stock Code	Business Positioning	Policy Benefit Logic
Semiconductor Manufacturing International Corporation (SMIC)	688981	Leading domestic wafer foundry, mass production of 14-28nm processes	Increased orders from local design enterprises, boosted demand for local foundry services [4]
Huahong Semiconductor	300232	Specialized process foundry (55-180nm)	Stable demand for mature processes, indirectly benefits

Enterprise	Stock Code	Main Business	Benefit Logic
AMEC	688012	Leading etching equipment enterprise	Advanced process capacity expansion drives equipment demand [5]
Naura Technology Group	002371	Platform-type semiconductor equipment	Accelerated domestic substitution leads to increased equipment procurement

Enterprise	Stock Code	Main Business	Benefit Level
Will Semiconductor	603501	Image sensors (28nm)	Benefits from high-end chip design
GigaDevice Semiconductor	603986	Memory chips (28-65nm)	Benefits from memory chip design
Montage Technology	688008	Interface chips (28nm)	Benefits from chip design

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Core Zone: Huangpu District (Bay Area Integrated Circuit Industrial Park)
├── Sino-Singapore Guangzhou Knowledge City: 13.2 sq km planning
├── Key projects such as Greatek Semiconductor, Shennan Circuit, and Xingsen Semiconductor
└── Accounts for nearly 90% of Guangzhou's total enterprises

Two Poles: Nansha District, Zengcheng District
├── Nansha: CorePower Semiconductor, CoreGiant Semiconductor, Jingke Electronics (SiC, silicon photonics)
└── Zengcheng: Zengxin Technology (intelligent sensors), Yuehai

Multiple Nodes: Baiyun District, Tianhe District, etc.
└── Verisilicon Guangzhou: Leading semiconductor IP licensing enterprise settled here [3]

Project	Investment Scale	Progress
Greatek Semiconductor Phase III	RMB 7.5 billion IPO	Accepted, targeting silicon photonics processes [6]
AMEC South China Headquarters	Not disclosed	Construction of R&D and production base
Verisilicon Guangzhou	RMB 23.4 million	Settled in Baiyun District in September 2025

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• Key Focus: Cambricon, Hygon Information, Loongson Technology
• Rationale: Directly benefit from the 50% wafer fabrication subsidy, accelerating domestic substitution

• Key Focus: SMIC
• Rationale: Increased orders from local design enterprises, improved capacity utilization

• Key Focus: AMEC, Naura Technology Group
• Rationale: Driven by dual engines of capacity expansion demand and domestic substitution

Take an AI chip design enterprise as an example:

• Project
  : Wafer fabrication of 7nm process AI chips
• Wafer Fabrication Cost
  : RMB 50 million
• Guangdong Provincial Subsidy
  : 30% (RMB 15 million, capped at RMB 10 million)
• Guangzhou Municipal Subsidy
  : 40% (RMB 20 million, capped at RMB 5 million)
• Actual Subsidy Received
  : RMB 15 million (after superposition)
• Actual Payment
  : RMB 35 million (30% cost savings)

• Technology Iteration Risk
  : Semiconductor technology updates rapidly, and deviations in R&D direction may lead to investment losses
• Policy Implementation Risk
  : Subsidy application conditions may change
• Market Competition Risk
  : Intensified industry competition may affect enterprise profitability
• Supply Chain Risk
  : Uncertainties in equipment and material supply

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Guangzhou’s integrated circuit industry policies have a significant positive impact on investment in the domestic semiconductor industry chain:

1. Directly Reduce R&D Costs
   : The maximum 50% subsidy for wafer fabrication of 28nm and more advanced processes significantly reduces R&D investment of chip design enterprises
2. Accelerate Domestic Substitution Process
   : Guided by the policies, local design enterprises and wafer foundry enterprises develop in a coordinated manner
3. Industrial Chain Agglomeration Effect
   : Guangzhou’s “One Core, Two Poles, Multiple Nodes” layout is increasingly improved, and the industrial ecosystem is taking shape rapidly
4. Clear Investment Opportunities
   : Enterprises such as Cambricon, Hygon Information, and SMIC will directly benefit from the policies

It is recommended that investors focus on the two main themes of

and to seize the strategic opportunity period for the development of the domestic semiconductor industry.

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[1] Department of Industry and Information Technology of Guangdong Province. Notice on the Warehousing of Projects Supported by the 2026 Guangdong Provincial Special Fund for Guaranteeing Key Tasks of Manufacturing Priority (New Generation Information Technology and Industrial Development) in the Electronic Information Industry Sector. July 9, 2025

[2] Bureau of Economy and Information Technology of Guangzhou Development Zone. Several Policies and Measures of Guangzhou Development Zone and Huangpu District to Support the High-Quality Development of the Integrated Circuit Industry. Sui Kai Jing Xin Gui Zi [2025] No. 4. June 16, 2025

[3] Guangzhou Daily. Guangzhou’s “Chip” Forces Race to Seize the “Window Period”. September 19, 2025

[4] Soochow Securities. Semiconductor Manufacturing International Corporation (688981): China’s Leading Wafer Foundry. September 3, 2025

[5] TF Securities. Semiconductor Industry Research Weekly Report. May 5, 2025

[6] Securities Times. Greatek Semiconductor, a Leading Analog Chip Enterprise in the Greater Bay Area, Has Its IPO Accepted by the Shenzhen Stock Exchange. December 19, 2025