A national integrated circuit fund, worth 120 billion yuan ($19.6 billion), and a Beijing integrated circuit industry fund worth 30 billion yuan have settled in the Beijing Economic-Technological Development Area (BDA), and its sales revenue of the integrate circuit industry is expected to hit 100 billion yuan by 2020, Beijing Daily reported on Oct 26.　

The area will use the two funds to set up a 20-billion-yuan government-led fund for the integrated circuit sector, according to an official with BDA.

It will also introduce the professional investment institute and foundation on manufacturing and design and develop a multi-layered financing service system covering Angels and venture capital investment, PE, and mergers and acquisitions.

The BDA offers favorable policies on leasing and office building purchase to integrated circuit investment and financing companies to draw them in. Companies that build major integrated circuit projects in the area will get more than 20 percent of their registered capital in investment from the area.

Integrated circuit equipment and equipment materials have been underdeveloped in China, so the BDA will build an integrated circuit equipment company to realize domestic production of related key equipment.

At the same time, the area will join hands with industrial funds and large companies in the fields of silicon chips, photo-resistors and target materials, and get key industrialization technology through international mergers and acquisitions.

In addition, the BDA plans to set up special funding for integrated circuit research and development to help specialized institutes build a public service platform and encourage patent pool construction and more corporate R&D input. It will establish an integrated circuit contribution award for companies above a certain annual operating revenue and give more than 2 million yuan in prize money to core teams.

The area's integrated circuit industry sale revenue is expected to reach 100 billion yuan by 2020 and a total of 300 billion yuan will be invested, including 200 billion yuan on manufacturing, 50 billion yuan on design, 30 billion yuan on equipment and materials, 10 billion yuan on package testing, and 10 billion yuan on the construction of specialized parks, according to the BDA.