Research On The Effect Of Government Subsidy On The Performance Of Changdian Technology Company

The integrated circuit industry is a strategic,fundamental and leading industry,which is the foundation and key to the development of the new generation of information technology.The Chinese government has successively introduced a series of integrated circuit industry policies to promote the high-quality development of the integrated circuit industry,further enhance Chinese comprehensive national strength,international competitiveness and international discourse power.However,there are still technical bottlenecks in high-end products and advanced processes in Chinese integrated circuit industry,low chip self-sufficiency rate,high dependence on intellectual property rights,insufficient independent innovation ability and relatively weak industrial competitiveness.Therefore,studying the impact of government subsidies on the performance and efficiency of integrated circuit enterprises has certain practical significance for better leveraging the effectiveness of government subsidies.This article reviews the industry environment,development trends and government subsidy policies of the integrated circuit industry.With the help of a case study of Changdian Technology,based on financial data from 2013 to 2021,a horizontal and vertical analysis was conducted on the changes in the financial and non-financial performance of Changdian Technology before and after the government subsidy policy.The conclusion was drawn as follows:(1)Although government subsidies supplement Changdian Technology’s cash flow and inject blood into the company,it has alleviated short-term debt repayment pressure,but its impact on long-term debt repayment ability is not significant.Government subsidies have had a certain impact on Changdian Technology to turn losses into gains.When the net return on assets and return on total assets are lower than the industry average,government subsidies reduce the difference between the two and the industry average.When the net return on assets and return on total assets are higher than the industry average,government subsidies play a "icing on the cake" effect.The impact of government subsidies on the quality of Changdian Technology’s assets is not significant.In years with negative net profit growth rates,government subsidies eased the negative growth.(2)In the early stage of the development of Changdian Technology,government subsidies significantly improved its innovation ability.However,in the later stage of development,as Changdian Technology’s strength increased,technological innovation still relied on financial subsidies,but the investment of free funds significantly increased.(3)Changdian Technology has fully utilized government subsidy projects,increased investment in advanced packaging processes and product research and development,promoted further improvement in technology,product value,brand awareness and enhanced Changdian Technology’s market competitiveness.According to data analysis of industries and case companies,case studies on the impact of government subsidies on the performance of emerging integrated circuit industry enterprises have been enriched.This provides reasonable suggestions for Changdian Technology and the entire integrated circuit industry to more effectively apply government subsidy policies,enhance the technological innovation ability of the integrated circuit industry,and improve the market and international competitiveness of Chinese integrated circuit industry.