In the coming five years, Shanghai will inject a total of 450 billion yuan into its industry, including 150 billion yuan into IT industrial undertaking, and an investment amount of 70-75 billion yuan for integrated circuit industry, as is known from a Symposium on Integrated Circuit Industry Development held Wednesday in Shanghai.

Shanghai's IT industry is expected to create an output value of over 400 billion yuan by 2005, about 25 percent of the municipal total, to show an annual average growth of 30 percent. With an overall technological level measuring up to international standards and a base of more than ten production lines built, it will by its chips production and software design hold lead in domestic markets.

To raise the quality and overall competitiveness of Shanghai's IT industry, efforts are being made to follow closely international trend and, according to market demands, focus on the seven categories of products as integrated circuit, telecom, computer and Internet, electronic vacuum devices, new electronic component, video and audio, and software. In the long run, IT industry will help Shanghai rise as the biggest center going in for integrated circuit designing, production, sealing and packaging, to be run with a big array of components and the largest amount of products exported.

A series of measures have been taken to boost Shanghai's IT industry. First, specialized integrated circuit designing and production is to be developed. Over 100 large designing corporate establishments will be built according to advanced standards by 2005. Second, 40 percent of chips will be self-reliantly produced to satisfy the country's demand for national security, economic construction and social stability. Third, a rational industrial structure is to be developed. The priority will be placed on expansions of existing industrial parks and construction of a large production base of integrated circuit concentrating on Zhangjiang Hi-tech Park. Along with a sealing and packaging base in Jinqiao, Songjiang Export Processing Zone and Nanhui IT Developing Zone, a designing base will also be built centering on Zhangjiang and Caohejing Hi-tech Parks.

(People's Daily 09/29/2000)