Nanjing Customs agreed to carry out a pilot reform on the bonded model for the integrated circuit industrial chain in Wuxi on April 2.
Under the reform, enterprises involved in the IC industrial chain can carry out value chain extension services such as bonded maintenance. Bonded goods can be freely circulated throughout the industrial chain with more favorable and convenient tax management, according to local customs.
The IC industry is one of Wuxi's pillar industries and drives the growth of the city's foreign trade.
Data from the local commerce bureau showed that annual foreign trade related to the IC industry amounted to about $15 billion.
Wuxi is considered the most developed city in Jiangsu's IC industry with its total output value in 2019 surging 8.3 percent year-on-year to 117.8 billion yuan ($16.6 billion), the second highest in China.
Heavy investments by leading enterprises such as Huahong Group and SK Hynix contributed greatly to the rapid growth of Wuxi's IC sector. In May 2020, the world's largest photolithography supplier, ASML Holding, signed a deal to expand its technical service base in the Wuxi National Hi-tech District.
Huang Anjun, general secretary of the Wuxi Semiconductor Association, believes that the reform will help promote cooperation between international enterprises in the IC industrial chain in Wuxi.
According to Huang, Wuxi is one of the few Chinese cities with a whole industrial chain for IC, including materials, design, production, packaging, and testing.
Huang said that the reform is expected to improve the business environment in Wuxi and raise awareness of innovation in the industry.
