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Chengdu Hi-tech Industrial Development Zone

Established in 1988, Chengdu Hi-tech Industrial Development Zone was approved as one of the first bat national hi-tech development zones in 1991. In 2000, it was open to APEC and has been recognized as a national advanced hi-tech development zone in successive assessment activities held by China's Ministry of Science and Technology. It ranks 5th among the 53 national hi-tech development zones in China in terms of comprehensive strength.

Chengdu Hi-tech Development Zone covers an area of 82.5 km2, consisting of the South Park and the West Park. By relying on the city sub-center which is under construction, the South Park is focusing on creating a modernized industrial park of science and technology with scientific and technological innovation, incubation R&D, modern service industry and Headquarters economy playing leading roles. Priority has been given to the development of software industry. Located on both sides of the "Chengdu-Dujiangyan-Jiuzhaigou"golden tourism channel, the West Park aims at building a comprehensive industrial park targeting at industrial clustering with complete supportive functions. The West Park gives priority to three major industries i.e. electronic information, biomedicine and precision machinery.

I. Development of Key Industries

1. Industrial Orientation

By giving priority to electronic information industry with microelectronic technology and software industry playing leading roles, biomedicine industry focusing on the modernization of traditional Chinese medicine and precision machinery manufacturing featured by advanced technologies, the Hi-tech Zone has identified its development orientation and pursued a differential development. Remarkable achievements have been made in industrial clusters with increasingly prominent characteristics.

2. Development of Key Industries

The three major industries, namely, electronic information industry, bio-pharmacy and precision machinery manufacturing have been gradually demonstrating their leading role in the industrial economy in the zone. Among them, electronic information industry, boosted by the newly initiated projects such as Intel, etc., has gained rapid growth momentum, increased by 54.3% over the same period of the previous year. The output value has taken up 1/5 of the total of the city. While bio-pharmacy industry, facilitated by key mature enterprises like Dikang, also maintains steady growth, rising by 27.8%, with the production value accounting for 23.7% of the total. Meanwhile, precision machinery manufacturing also shows relatively strong momentum for development.

II. Progress of the Industrial Cluster Development Zone

1. Infrastructures

The drafting and compilation of detailed regulations and control measures in the Hi-tech Zone have been completed. Infrastructure construction and industrial layout will strictly follow these plans. At the same time, planning and design of the South Park and the West Park - the two labor-intensive parks for full employment and the "SMEs Park" for SMEs quick settlement in the Park have been finished. The adjustment plans for project land use of Dayuan Group Project in the South Park, Mould Industrial Park and the Bonded Logistics Center in the South Park, etc., have been completed.

In order to meet the land demand of key industrialization projects and key infrastructure projects, a new round of amending and compilation of land use planning, as well as the increment of construction land to the West Park, has been completed. Greater efforts will be addressed to land application and acquisition, and the land applied for and acquired before 2006 will be put in place soon. Greater efforts will also be addressed to idle land cleaning-up and recovery, as well as clearance of taxes and fees for land acquisition.

In order to improve the industrial environment, the Governance Center in the West Park has been completed and put into use;Innovation Zutuan Project has been completed and commissioned;an overall improvement of Tianfu Software Park has been made to upgrade the capacity and industrial image of the Park in all aspects;a central air-conditioning system has been additionally installed in Section A;the electric power capacity expansion project has been finished, ensuring a 16000 KWA power supply capacity;unified signs in the Park have been standardized with special funds;the functions of the Mould Industrial Park has been improved;related supportive equipment has been upgraded including the construction of employees dormitories, etc., and park landscape has been improved at a high standard. Secondly,main roads such as the "three horizontal and five vertical"main roads and pipeline network in the new development areas like the South City New Area and Dayuan Area in the South Park and the Southwest Area in the West Park have been basically completed in line with city standards. Ninety-five percent of all the areas had been equipped with standard public pipeline network; 65km of municipal roads had been built or upgraded in 2006. Thirdly,a group of important power supply facilities including 220kv Cooperative Substation, 110kv Dayuan B Substation and 110kv Xinyuan C Substation; key projects like Huangtianba-Wenjiang ground-to-underground power line and the power tunnel of Yuanhua Road have been completed; the building of the cooperative sewage treatment plant in the West Park has picked up speed. Fourthly,by focusing on the landscape improvement project of Xixin Avenue (Hi-tech Zone Section of Chengdu-Guanxian Expressway), efforts will be made to strengthen the renovation of roads, vertical sections and sidewalks. The whole year has increased 185,000 km2 of green zreas. Fifthly,the export processing zone, with projects of Intel, Semiconductor Manufacturing International, Unisem and Molex,is developing rapidly. In 2006, the export value reached nearly USD 300 million.

2. Projects in the Park

According to the industrial planning, the South Park of the Hi-tech Development Zone will focus on the development of software industry and strive to build a modernized park of science and technology integrated with scientific and technological innovation, industrial incubation and modern services. Since the beginning of this year, a group of domestically renowned IC design companies including Fujitsu and other world-famous software enterprises like IBM, Symantec, Microsoft, etc. have entered this area. Meanwhile, with the introduction of NEC, one of the Fortune Global 500, and the congregation of mainstream communication enterprises including Siemens, Alcatel, Ericsson, Nokia, Motorola, ZTE Communications and Huawei have helped this area become one of China's largest embedded software R&D bases for communication products. Headquarters project is gradually progressing in the South Park. HQs of Guodian Dadu Hydropower Development, China Unicom, China Mobile, China Netcom, Citic Group, Sichuan Investment Group, Shengda Group, New Hope Group, Tongwei Group and Defeng Company have settled down in the South Park.

The West Park, closely focusing on building a hi-tech manufacturing base by focusing on the three major industries, is striving to create a first-rate comprehensive industrial park featuring high degree of industrial clustering, quick information transmission and beautiful living environment. In electronic information field, key projects such as Amphenol Connector and semi-conductor supportive enterprises like BOC have settled here. With regard to biomedicine, a group of key projects including the U.S. Haiqi Bio-tech have entered the Zone. In precision machinery manufacturing, Kimken and other projects have entered this area.

The newly entered projects have realized an intensive and clustering industrial development mode in accordance with the industrial layout thought of function-based clusters, organized interactions, support of industrial chains and ecological development.

3. Industrial Clusters

The three leading industries in the Hi-tech Zone maintain a prominent momentum of clustering development. Their unique characteristics are getting more and more outstanding with each passing day. Particularly, the integrated circuits and software industry have taken up leading positions in China.

After years of development, Chengdu integrated circuit industry represented by Chengdu Hi-tech Development Zone, has been on a rapid rise, with remarkable achievements and constantly improving industrial chains industrial status. First, the number of IC design businesses has reached more than 50 compared with that of no more than 10 in 2004. And Fujitsu is one of the renowned enterprises. The short-term goal is to increase the number to 100 as soon as possible. Second, in semiconductor manufacturing, the construction of 8-inch Cension semiconductor production line is picking up speed. As for packaging and testing, the production capacity of Intel and other ready projects is increasing day by day. They are playing important boosting role in the industry. In the upstream of the industrial chain, BOC and other semiconductor supportive enterprises have successfully settled in the Zone; in the downstream of the chain, key projects including production bases of the U.S. Agilent electronic measuring instrument and Molex Connector have been successfully introduced into Chengdu. A complete integrated circuit industrial chain has taken shape, which is composed of IC design, semiconductor manufacturing, packaging testing and supportive projects. It has taken up a leading position in central and western China and has laid a foundation for Chengdu to become the third pole of integrated circuit industry in China.

In software industrial clusters, with the development of software outsourcing, particularly the introduction of service outsourcing center of IBM, the world's largest multinational enterprise in information industry, national bases for software and software service outsourcing have taken initial shape. The two major clusters based on IPO and BPO, oriented towards Europe, America, Japan and the ROK have been substantially developed and strengthened. The handling and market capacity of international software businesses has been evidently promoted; in information security, an information security cluster, consisting of 30 enterprises with G30 as the core, has formed. In particular, with the integration of Symantec, the global fourth software company and a flagship enterprise in information security, the Hi-tech Zone is more likely to play a leading role with more prominent advantages in information encryption, security platform, information security project, network security testing, security and secrecy of mobile communication GMS/CDMA and encryption algorithm; in digital entertainment field, famous game businesses like Intel are gathering here from home and abroad; a development momentum of "one platform plus two groups"in digital entertainment industry has come true with the successful introduction of Microsoft XBOX360 game technology incubating center, the only one in China, and the establishment of "Chengdu Tianfu Digital Entertainment Industrial Group"and "Chengdu Tianfu Software Digital Media Industrial Group". In addition, two major feature industrial clusters emerge in software industrial clusters. One is 3G communications enterprises cluster with Motorola, Nokia, Alcatel, Ericssion, ZTE telecommunications and Huawei as the core, and the other is IPTV enterprises clusters with Changhong and Datang as the core. With the rapid development of software outsourcing, information security, digital media and embedded communication, the software industry with strong regional competitive strength, large-scale and intensive development, is on a rapid rise, with flagship businesses and corporate groups as support and relatively strong independent R&D capacity as the core.

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