Ministry of Industry and Information Technology: By 2024, my country's 5G mobile phone shipments will account for more than 85%

In order to implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, better play the supporting, leading and enabling role of the electronic information manufacturing industry in the industrial sector, and help achieve the main expected goals of industrial economic development, the Ministry of Industry and Information Technology and the Ministry of Finance recently jointly issued the "Electronic Information Manufacturing Industry 2023-2024 Steady Growth Action Plan" (hereinafter referred to as the "Action Plan").

The Action Plan proposes that the average growth rate of added value of computer, communication and other electronic equipment manufacturing industry will be about 5% from 2023 to 2024, and the operating income of enterprises above designated size in the electronic information manufacturing industry will exceed 24 trillion yuan. In 2024, the shipment volume of 5G mobile phones in my country's mobile phone market will exceed 85%, the market share of 75-inch and above color TVs will exceed 25%, and the output of solar cells will exceed 450 GW. The supply capacity of high-end products will be further improved, and new growth points will continue to emerge; the industrial structure will continue to be optimized, and the construction of industrial clusters will continue to advance, forming a good situation of upstream and downstream development and synergy and mutual promotion.

It is worth noting that the Action Plan also points out that the electronic information manufacturing industry will cultivate and expand new growth points in the future from six aspects: virtual reality, audio-visual industry, advanced computing, Beidou application, new display, and smart photovoltaics.

Attached below are the specific work measures of the Action Plan

(I) Firmly implement the strategy of expanding domestic demand and stimulating market potential

1. Promote consumption upgrades in traditional areas. Rely on technology and product form innovation to boost traditional electronic consumption such as mobile phones, computers, and televisions, and continuously release domestic market demand. Promote the high-end upgrade of mobile phone brands, cultivate and expand the folding screen mobile phone industry ecosystem, and promote the maturity of the folding screen mobile phone ecosystem from the perspectives of optimizing costs, improving technology, and increasing adaptation. Serve the national sports and fitness needs with intelligent and information-based means, and publicize and promote typical cases of smart sports. Actively respond to the problem of accelerated population aging, do a good job in guiding and standardizing the development of the smart health and elderly care industry, publish a promotion catalog of smart health and elderly care products and services, carry out pilot demonstrations of smart health and elderly care applications, and continuously improve the standardization and systematization of pilot demonstration work.

2. Cultivate and expand new growth points.

Virtual reality. Implement the "Virtual Reality and Industry Application Integration Development Action Plan (2022-2026)", seize the strategic window period, enhance the core technology innovation capabilities of the virtual reality industry, and promote the continuous enrichment of virtual reality smart terminal products. Deepen the organic integration of virtual reality with industrial production, cultural tourism, integrated media and other industries, carry out the collection of typical virtual reality application cases and industry docking activities, and promote the virtual reality industry to go deeper and more practical.

Audiovisual industry. Research and formulate a new round of follow-up policies to support the development of the audiovisual industry, accelerate the cultivation of new growth points for audiovisual consumption, promote high-quality development in emerging fields such as in-vehicle audiovisual and commercial display, accelerate the cultivation of consumer demand for OLED TV, Mini LED, 8K, 75-inch and above high-end display complete products, lead the development of new technologies for color TVs, and improve profitability.

Advanced computing. Promote the development of advanced computing industry and industry applications, collect application cases and docking of advanced computing in industries such as industry and urban management, hold advanced computing technology innovation competitions and other activities, and accelerate the application of advanced technologies and products. Encourage the construction of data infrastructure and artificial intelligence infrastructure to meet the application needs of artificial intelligence and large models.

Beidou application. Implement the "Several Opinions on the Promotion and Application of Beidou in the Mass Consumption Field", enhance the supply capacity of the Beidou industry, create Beidou application demonstration scenarios in the mass consumption field, increase the penetration rate of Beidou applications, and promote the industrialization, marketization, and large-scale development of Beidou.

New display. Aiming at new intelligent terminals, culture, tourism, landscape, commercial display and other fields, promote the expansion of the application of AMOLED, Micro-LED, 3D display, laser display, etc., and support the acceleration of paperless alternative applications such as LCD panels and electronic paper.

Smart photovoltaics. We will thoroughly implement the "Smart Photovoltaic Industry Innovation and Development Action Plan (2021-2025)", promote the innovative application of "smart photovoltaics + energy storage" in the fields of industry, agriculture, construction, transportation, and new energy vehicles, and release the fourth batch of smart photovoltaic pilot demonstration lists.

(II) Increase investment and transformation efforts to promote high-end, green, and intelligent development

1. Support the construction of major projects. Fully mobilize the enthusiasm of various funds and social capital, further expand the space for effective investment, orderly promote the construction of major projects in key areas such as integrated circuits, new displays, communication equipment, smart hardware, and lithium-ion batteries, strengthen the guarantee of production factors such as energy resources, employment and land, actively attract resources from all parties, improve the supply capacity of effective production capacity, strive for early production and early results, and drive steady growth of investment in the entire industry.

2. Promote counter-cyclical upgrading and transformation of industries. Accelerate industrial transformation and upgrading towards high-quality development, encourage enterprises to carry out counter-cyclical investment, and enhance industrial competitiveness. Support enterprises to accelerate the technical transformation and upgrading of production lines, eliminate backward production capacity in accordance with laws and regulations, and increase the proportion of mid- and high-end products.

3. Promote green manufacturing and intelligent upgrading. Encourage the construction of green factories in the electronic information manufacturing industry, carry out green factory evaluation in accordance with the "Guidelines for Evaluation of Green Factories in the Electronic Information Manufacturing Industry", promote the circular use of industrial resources, and vigorously develop and promote process technologies and equipment with functions such as efficient energy utilization, pollution reduction, waste resource utilization and harmless treatment. Aiming at carbon peak and carbon neutrality, promote the intelligent transformation and upgrading of the photovoltaic industry, support breakthroughs in key technologies of intelligent photovoltaics, product innovation and application, and the construction of public service platforms. Promote the upgrading and development of the LED industry and promote the expanded application of healthy lighting products.

(III) Maintaining the basic foreign trade situation and improving the level of openness and cooperation in the industry

1. Stabilize the export market. Guide the electronic equipment industry to optimize the export product structure, increase the export proportion of high value-added products, and build the international competitiveness of brands. Encourage and support enterprises to actively participate in international exhibitions and display activities, guide enterprises to seize digital trade opportunities, continue to promote export enterprises to carry out cross-border e-commerce business, and tap the potential of online and offline international markets. Together with relevant departments and key provinces and cities, help enterprises make full use of export tax rebate policies, improve inbound and outbound logistics efficiency, and promote efficient integration of logistics elements.

2. Actively carry out international exchanges and cooperation. Adhere to the principle of expanding opening up and win-win cooperation, continue to optimize the business environment for foreign investment, and encourage foreign-funded enterprises to expand investment in the field of electronic information in my country. Establish a regular exchange and cooperation mechanism with relevant countries (regions) in the fields of integrated circuits, new displays, smart health care, ultra-high-definition video, Beidou applications, etc. Implement the "Belt and Road" initiative, take advantage of the outward-oriented development advantages of industries such as photovoltaics and lithium batteries and the opportunities of the global energy revolution, carry out bilateral and multilateral exchanges, and promote the process of international production capacity and application cooperation.

(IV) Deepen supply-side structural reform and improve industry supply level

1. Improve the level of innovation and development. Accelerate the innovation and iterative application of key core technologies in the field of information technology, and strengthen the layout of forward-looking industries such as Micro-LED and printed display. Facing key areas such as personal computing, new display, VR/AR, 5G communication, and intelligent networked vehicles, promote the technical research of electronic materials, electronic special equipment, and electronic measuring instruments, study and establish an innovative public service platform for the electronic materials industry, and give full play to the public service functions of the integrated circuit material production and application demonstration platform, the national new material testing and evaluation platform, and the electronic materials industry center. Promote the innovative development of the energy electronics industry, implement the "Guiding Opinions on Promoting the Development of the Energy Electronics Industry", and accelerate the innovative development of solar photovoltaics, new energy storage products, key terminal applications, and key information technologies.

2. Comprehensively improve supply capacity. Implement the "Several Policies to Promote the High-Quality Development of the Integrated Circuit Industry and the Software Industry in the New Era" and various detailed rules, implement the VAT additional deduction policy for integrated circuit enterprises, and coordinate to solve the problems of enterprises in enjoying preferential policies. Focus on improving chip supply capacity and actively coordinate the docking and exchanges between chip companies and application companies. Facing the development needs of the digital economy, optimize the layout of industries such as integrated circuits and new displays, improve the level of high-end supply, and enhance the supporting capabilities of materials, equipment, and spare parts. Coordinate resources to increase support for industries such as lithium batteries, sodium batteries, and energy storage, accelerate breakthroughs in weak links in key materials, equipment, and processes, and ensure the supply of high-quality lithium batteries and energy storage products.

(V) Maintain smooth industrial chain and supply chain and create a coordinated industrial ecosystem

1. Improve the modernization level of the industrial chain. Focus on integrated circuits, new displays, servers, photovoltaics and other fields, promote the supplementation of weak industry chains, the extension of advantageous industry chains, the upgrading of traditional industry chains, and the establishment of emerging industry chains, promote the integration and innovation of the upstream, midstream and downstream of the industrial chain, and the through-development, and comprehensively improve the stability of the industrial chain and supply chain. Implement the "Notice on Promoting the Coordinated Development of the Photovoltaic Industry Chain and Supply Chain" and the "Notice on Doing a Good Job in the Coordinated and Stable Development of the Lithium-ion Battery Industry Chain and Supply Chain", promote the upstream and downstream of the photovoltaic and lithium battery industry chains to strengthen docking and coordinated development, and build a unified large market.

2. Promote the integrated development of large, medium and small enterprises. Support leading enterprises to become bigger and stronger, and continue to play a leading and supporting role. Encourage leading backbone enterprises to organically combine with innovative small, medium and micro enterprises, colleges and universities, scientific research institutions and various maker groups around the main business direction to form scale. Cultivate and attract a group of advantageous enterprises that focus on market segments and enrich the industrial chain system around the upstream and downstream of the industry and related fields where common technologies exist. Further accelerate the cultivation of specialized and innovative "little giant" enterprises in the electronic information manufacturing industry, single champion enterprises in the manufacturing industry and characteristic industrial clusters of small and medium-sized enterprises, and encourage local governments to support qualified enterprises and clusters.

3. Optimize industrial layout. Give full play to the role of "chain leader" enterprises, optimize the allocation of resources in the industrial chain, and cultivate a number of advanced manufacturing clusters with international competitiveness. Encourage industrial optimization and restructuring, reasonably carry out corporate mergers and acquisitions, overseas mergers and acquisitions, etc., to promote orderly market competition. Support advantageous electronic equipment manufacturing regions to establish a list of key electronic equipment and upstream supply chain companies, and do a good job in service guarantee. Implement the "Guiding Opinions on Promoting the Orderly Transfer of Manufacturing Industry" and the "Guiding Catalog for the Development of Manufacturing Transfer (2022 Edition)", and encourage enterprises to give priority to the gradual transfer to the central and western regions by holding 1+N industrial transfer docking activities.

(VI) Optimize and improve the industrial policy environment and promote the stable operation of the industrial economy

1. Promote the formulation and revision of standards. Continue to do a good job in electronic information technology standards, strengthen the integration of advanced technologies and standards, and promote high-tech innovation with high standards. Sort out the standard systems of basic electronic components, semiconductor devices, optoelectronic devices, electronic materials, new displays, integrated circuits, smart homes, virtual reality, etc., and accelerate the formulation of key standards and the implementation of published standards. Strengthen the promotion and implementation of mandatory standards such as "Safety Requirements for Lithium Battery Packs for Electric Energy Storage Systems". Optimize the formulation of standards related to the viewing experience of smart TV users. Deeply participate in global standardization activities in the field of electronic information and promote the "going out" of Chinese standards.

2. Increase fiscal and financial support. Implement policies such as tax incentives for high-tech enterprises, additional deductions for R&D expenses, and deferred taxation of equity incentives to reduce the burden on enterprises and encourage them to increase their R&D investment. Make good use of the first unit (set) and first batch policies to promote the demonstration and application of electronic equipment and electronic materials. Guide social capital to increase investment in the electronic information manufacturing industry, and support qualified enterprises to make good use of financing tools such as domestic and overseas listing financing and issuance of various bonds. Promote the high-quality construction of regional equity market "specialized, refined, and new" special boards in various places, and improve the level of multi-level capital markets in serving specialized, refined, and new small and medium-sized enterprises. Organize various places to carry out "one chain, one policy, and one batch" financing promotion actions for small and medium-sized enterprises, and formulate systematic solutions that accurately match the financing needs of small and medium-sized enterprises on the chain.

3. Strengthen support for scientific and technological talents. Keep up with the forefront of information technology development, support the establishment of a professional and skilled talent training model that closely integrates industry and academia, and encourage enterprises and universities to carry out order-based talent training and modern apprenticeship pilot programs. Accelerate the independent training of talent teams, support key universities to carry out the construction of "integrated circuit science and engineering" first-level disciplines and integrated circuit colleges, and expand enrollment and special training scales. Create a good environment to promote talent development, build an exchange platform for entrepreneurs and various professional talents, and create a good atmosphere for attracting and retaining talents.