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Not long ago, the construction project of Zhejiang Fulede Sensing Technology Co., Ltd., with a total investment of approximately 3 billion RMB, successfully topped out. This project marks the third high-end semiconductor strategic investment by FerroTec (China) in the Lishui Economic and Technological Development Zone, following the Zhongxin Wafers project and the Ferrotec semiconductor industry project.
Investing in three major projects over three years, He Xianhan, Chairman of the Board of FerroTec (China) and Chairman of Zhejiang Fulede Sensing Technology Co., Ltd., expressed strong confidence in the company’s development in Lishui: “Such ‘development zone speed’ is unprecedented in the semiconductor industry. The ‘mutual pursuit’ between Fulede and Lishui has entered a new phase.”
The transition from companies being “willing to invest” to “confident in investing”, and then to “continuous investment” is a result of Lishui’s solid efforts in advancing value-added reforms in government services, continuously optimizing the industrial ecosystem, and improving service levels.
The value-added reform of government services is a significant reform task assigned by the provincial government. In recent years, Lishui City has adhered to the concept of “building the service chain on the industrial chain”, focusing on the development needs of the entire lifecycle of enterprises and the entire industrial chain. In addition to continuously enhancing the convenience of basic government services, the city has also emphasized providing more precise and integrated value-added services for enterprises, creating a new path with Lishui characteristics that empowers specific industries through value-added reforms in government services.
Lishui City has innovatively established a “Four Leaders” collaborative value-added service system, and the “creation from nothing” cultivation of a characteristic semiconductor industry chain is a vivid practice of this system. It is understood that the “Four Leaders” refer to the “Chain Leader” responsible for regional industrial chain coordination, the “Dean” responsible for technological innovation, research, and result transformation, the “Principal” responsible for professional and technical talent training, and the “Bank President” responsible for financial services.
Under the leadership of the “Chain Leader”, Lishui City has focused on its “specialized track” and pioneered the “Smart-IDM” model for cultivating the industrial chain. This approach scientifically plans the blueprint for the semiconductor industrial chain, efficiently targets investment, and achieves rapid parallel assembly of the industrial chain, thereby enhancing industrial agglomeration efficiency. The city has also introduced an integrated service mechanism for enterprise-related investments, utilizing methods like accepting incomplete applications and cross-level joint handling to accelerate project reviews and approvals. This has led to the formation of seven categories comprising 35 value-added service items for enterprises, enabling a “multi-in-one” one-stop service from project attraction, construction, to completion and production. By innovating a cross-regional project implementation mechanism through a cross-mountain coordination approach, Lishui City has established a city-county integrated “land quota revolving pool” to ensure sufficient land for projects. Last year, this mechanism facilitated the coordinated launch of the Ferrotec semiconductor industry project in the Lishui Economic and Technological Development Zone and Jingning County, with a total investment of approximately 12 billion RMB.
A favorable industrial ecosystem is the fertile ground for industry aggregation and innovation, as well as a critical value-added service that enterprises highly value. Lishui City is committed to creating an innovation service “circle of friends” for enterprises. The city has appointed Academician Zhu Junhao from the Chinese Academy of Sciences as the “Chief Scientist” for the semiconductor industry and has introduced eight professional research institutions. These efforts guide research institutes to focus on industry needs, tackling technical challenges to provide intellectual support for enterprises in overcoming key core technologies. Lishui City was the first in the province to launch a pilot reform of the “use-before-transfer” model for scientific and technological achievements, strengthening the collaborative linkages between government, industry, academia, research, finance, intermediaries, and application. This initiative has opened a “fast track” for more and better transformation of innovation results into productivity. Last year, Zhejiang Juexin Microelectronics Co., Ltd.’s project “High-Temperature Cooling Infrared Chips and Detectors Technology” won the top prize in the National Disruptive Technology Innovation Competition and was successfully included in the Ministry of Science and Technology’s reserve database for disruptive technologies.
Addressing the pain points, bottlenecks, and difficulties of talent and funding shortages faced by many semiconductor companies, Lishui City has proactively responded to value-added service needs. The city has introduced special policies for talent and technological empowerment to promote the high-quality development of the semiconductor industry. By leveraging local universities, Lishui has established a Semiconductor Industry College, an Artisans College, and technical schools, offering specialized semiconductor courses and “order-based” skill training programs. These initiatives greatly meet the demand for skilled labor immediately upon project completion and ensure that students are employment-ready upon graduation. Additionally, the city has innovated financing models by establishing a government-led industrial guidance fund, partnering with investment institutions that have professional expertise and strong capabilities, and mobilizing financial and social capital to actively follow suit. This has led to the formation of a diversified cooperative “financing matrix” combining government funds, multi-dimensional funds, and bank capital.
By focusing on development priorities and the needs of enterprises, continuously optimizing the business environment, and improving service “precision”, the specialized semiconductor industry chain of Lishui City has achieved impressive results. In just four years, Lishui has established 78 semiconductor industry projects with a total investment exceeding 70 billion RMB, cultivated 60 semiconductor industry enterprises above the designated size, and achieved an output value of nearly 10 billion RMB in 2023. Currently, Lishui’s specialized semiconductor industry platform has been included in the provincial “10,000-Mu, 1,000-Billion” new industrial platform cultivation list, and the entire semiconductor industry chain has been incorporated into the provincial integrated circuit industry development plan.