As an integrated circuits (ICs) highland in China, Shanghai has built a complete IC industry chain that brings together enterprises engaged in design, manufacturing, packaging and testing, equipment, and materials. It is now stepping up efforts to enhance the diversification and differentiation of IC products by fostering three pillar sectors – IC design, manufacturing, and equipment and materials. The city’s IC industry is expecting an average annual growth rate of about 20 percent in the 14th Five-Year Plan (2021-25) period.

Industry Advantages

1. Clustering Industry Resources

As a leading city for the IC industry in China, Shanghai is home to over 2,200 IC corporations, including 27 companies listed on the STAR Market of the Shanghai Stock Exchange, 40 percent of China's IC professionals and 50 percent of domestic entrepreneurship resources in IC.

2. A Complete Industry Chain

Capitalizing on its advantages in microchip manufacturing, Shanghai has built China’s most complete IC industry chain in Pudong's Zhangjiang and Jiading district, covering nearly all segments from equipment and materials, to chip design, manufacturing, packaging and testing, and electronic design automation.

3. Various Platforms

Through Shanghai IC Technology & Industry Promotion Center, the city has developed the IP database of IC design and R&D platforms for test production and manufacturing to facilitate microchip design and tape-out. Besides, several key IC laboratories have been established in Shanghai to enhance the cooperation of industry, universities and research institutes.

Source: Shanghai Foreign Investment Guide 2023