According to Some Policies for Encouraging Software Industry and Developing Integrated Circuit Industry, it is allowed for foreign investors to establish foreign-invested integrated circuit enterprises in forms of wholly foreign invested or Chinese-foreign equity joint ventures and contractual joint ventures.

Approval procedures for establishing foreign invested integrated circuit enterprise

Firstly, the Chinese investor or foreign investor’s undertaker shall apply to administration for industry and commerce for pre-approval Of enterprise name:

Thereafter, the applicant shall submit the following documents to Shanghai Foreign Investment Commission and the examination and approval institution authorized by the commission for the application for the establishment of foreign invested integrated circuit enterprises.

1. Written application for the establishment of foreign invested IC enterprises;

2. Feasibility study report;

3. Certifications of investors’ credit status, certificates of registration (copy) and ID certifications of legal representatives (copy)

4. approval of the state assets administrative authority on the assessment report regarding the state assets going to be invested by Chinese investor;

5. Contract and articles of association (for wholly foreign-invested, articles of association only) signed by all parties’ authorized representatives.

6. Name list of members of board of directors and their warrants;

7. Notification of pre-approval of enterprises name;

8. Certification for the registered enterprises name;

9. Other relevant documents.

Unless otherwise indicated, the documents shall be the original and signed by legal representatives, if not, the authorization letter by the representatives are required.

For the project with a total investment over US$100 million (excluding US$100 million), the feasibility study reports shall be examined by Shanghai Development and Reform Commission for approval.

The projects less than US$100 million in total investment, Shanghai Foreign Investment Commission and the institution authorized by the Commission shall examine the feasibility study report, contract and articles of association of the project and then grant the approval certificate for foreign-invested enterprise to the applicant approved. Finally, with the approval certificate, within one month of the date of the certificate, the applicant shall apply for enterprise registration to the administration for industry and commerce.