Create a new policy for the complete LCD industry chain to help TFT-LCD

Relevant persons from the Ministry of Information Industry said that Circular 15 takes into account the needs of national industrial development, and also takes into account the actual requirements of enterprises, and is in line with international standards. The publication of Circular 15 is just the right time. At present, the construction of the fifth-generation TFT-LCD production line in China is at a critical moment of climbing, facing difficulties in financing, importing raw materials and production. At this time, the introduction of preferential policies will greatly encourage and promote the industry.

BOE said that although the rules of the policy are not well understood, the introduction of Circular 15 will inevitably have a great effect on the domestic TFT-LCD industry.

Relevant persons of the Ministry of Information Industry believe that the promotion of this policy to the industry is reflected in the following aspects:

First, the policy stipulates accelerated depreciation. Depreciation deducts various taxes, which can partially solve the problem of insufficient funds in the initial stage of enterprise growth. Between November 1, 2003 and December 31, 2008, TFT-LCD product manufacturers import and export raw materials, spare parts and spare parts that cannot be produced domestically, and reduce some import taxes, and will give enterprises a certain buffer time.

Second, the policy is actually a signal to build a complete supporting industrial chain. On the one hand, the TFT-LCD industry is actually an assembly process, and the supporting parts and supporting raw materials are very complicated. If you do not develop your own supporting industrial chain, the production line will face no shortage of rice. The tax exemption for spare parts and spare parts has enhanced the confidence of domestic supporting factories and made them willing to invest more funds in supporting industries. On the other hand, it has enhanced the confidence of foreign companies to transfer production and technology to China, and helped China to build a supporting industrial chain on the spot. The person said: "The supporting manufacturers can also enjoy the same preferential policies. Supporting the development of supporting factories is conducive to the creation of a complete TFT-LCD industrial chain in China, which is the fundamental purpose of the country."

The upstream supporting industries of TFT-LCD include glass substrates, color filters, driver ICs, backlight modules, and polarizing plates. Materials and component costs are said to account for more than 60% of the cost of TFT-LCD production. At present, SVA attracts supporting factories such as lamps, PCBs, polarizers and backlights through joint ventures and cooperation. BOE builds its industrial chain through the acquisition of TPV Technology and the construction of the BOE Display Technology Park. Once the complete TFT-LCD industry chain is formed in China, enterprises can participate in international competition by providing cost-effective products, which is expected to change the world pattern of the LCD industry.

In the current world LCD industry pattern, South Korea ranks first, Taiwan Province of China second, Japan third. China's mainland is becoming the world's fourth production center for TFT-LCDs.

The industry believes that as a new intervener, China's TFT-LCD project still faces many challenges, such as lack of core technology, lack of sufficient financing capacity, market demand fluctuations, and strong competition from competitors worldwide. Wait, but China has a potential market and potential development momentum, and the stamina is great. The introduction of this policy will help the domestic TFT-LCD production line to pass the difficult period, adjust the process equipment to the best state, make the investment as much as possible, and gradually form a supporting industrial chain in the country to enhance the builders and investors. Confidence.

At the same time, industry insiders have called for China's TFT-LCD industry to just start, and have a long way to go. In addition to the policy, I hope that the state will give more support in research and development, and hope that the government will communicate with enterprises and create a more relaxed industrial environment.

The preferential policies for supporting thin-film transistor displays jointly issued by the Ministry of Finance and the State Administration of Taxation will promote the healthy and rapid development of their industries.

Policy: Just in time

Recently, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on Supporting the Tax Preferential Policies for the Development of Thin Film Transistor Display Industry" (Cai Shui [2005] No. 15, hereinafter referred to as Circular 15), which stipulates the production equipment of TFT-LCD products manufacturers. The depreciation period can be as short as 3 years; from November 1, 2003 to December 31, 2008, the tariff-free goods list is exempted from the import of domestically produced raw materials and consumables that cannot be produced by TFT-LCD product manufacturers. It shall be separately formulated by the Ministry of Finance in conjunction with the relevant departments; from November 1, 2003 to December 31, 2008, the TFT-LCD product manufacturing enterprises shall import the special building materials, supporting systems and production equipment spare parts that cannot be produced in China. Import duties and import value-added tax (the list of specific duty-free goods shall be separately formulated by the Ministry of Finance in conjunction with relevant departments).

"We have been calling on the country to support the LCD industry like the semiconductor industry." Dong Youmei, executive vice president of the China Optical Optoelectronics Industry Association LCD Branch, said that the introduction of Circular 15 is the result of all efforts in the TFT-LCD industry.

Dong Youmei said: "From the perspective of process difficulty and investment quota, TFT-LCD is as difficult as the semiconductor industry." TFT-LCD products require many technologies, including semiconductors, chemicals, materials, and optics. In other fields, technical barriers are high; TFT-LCD manufacturing processes are complex, especially for front-end arrays. Although the line width is not as precise as that of integrated circuits, its manufacturing size is many times larger than that of silicon wafers, and with the development of liquid crystal displays The trend of manufacturing processes will continue to increase. Moreover, due to the pressure of cost competition, it is common to plan and invest in large-size LCD panel production lines, and the cost of construction is higher and higher, and the investment scale is similar to that of semiconductor fabs. At present, the investment of one 5th generation line exceeds 1 billion US dollars.

A person from the Ministry of Information Industry said that the publication of Circular 15 is the result of years of efforts by various relevant departments including the Ministry of Information Industry and the industry. Dong Youmei revealed the background of the policy. According to reports, when Jilin Caijing introduced the first generation TFT-LCD production line, the policy gave some support. With the investment in the construction of two fifth-generation TFT-LCD production lines of SVA and BOE, the industry feels more difficulties and calls for government support. “Why is the time limit for Circular 15 in November 2003? In fact, from that time on the support policy for the TFT-LCD industry.” In 2003, SVA and BOE entered through joint ventures and acquisitions. TFT-LCD industry.




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