For the development of the micro-electronic industry, Beijing boasts not only a favourable market but also unique advantages in terms of industrial foundation, talents and sound investment environment, according to China Daily.
　
The brisk demand for integrated circuits in China offers a golden opportunity for the development of the nation's micro-electronic industry, said Qu Weizhi, vice-minister with the Ministry of Information Industry (MII).
　　
MII statistics revealed that the market demand for integrated circuits totalled 16.6 billion pieces last year, valued at US$6.63 billion, an increase of 36.26 percent from 1998, and China is expected to become one of the largest integrated circuits markets in the world.
　　
Due to the rapid development of high-tech industries, involving electronic information, computer-related products, telecommunication products, software and Internet technology, Beijing now leads the micro-electronic products consumption market in China, said Liu Haiyan, vice-mayor of the capital.
　　
Moreover, the upgrading of traditional industries and the emergence of the high-tech identity card (ID) sector is expected to provide enormous market opportunities.
　　
In addition to the market advantages, 40 years of efforts have been rewarded in a fairly complete array of industries including the research and development of the micro-electronic technology, the designing of integrated circuits, the production and testing of electronic chips, and the application of integrated circuits.
　　
Such a mutual-promotion structure, a backbone for establishing micro-electronic production base in Beijing, implies huge potential of long-term development, said Wang Yangyuan, academician at the Chinese Academy of Social Sciences.
　　
Official statistics show that Beijing boasts 1.12 million technical personnel and 252,000 people engaged in the scientific and technological activities, making up 10 percent of the country's total.
　　
Experts from the Chinese Academy of Sciences and Chinese Academy of Engineering account for over half of the national total.
　　
Beijing's 67 universities and colleges and more than 200 State-level research institutes provide rich human resources for the development of the micro-electronic industry.
　　
Zhang Boxu, president of Beijing Electronics and Electrical Appliance Association, said the city's favourable investment environment, involving infrastructure, energy supply, information resources as well as preferential policies and various efficient and convenient services offered by the municipal government, which might decrease operation costs, has attracted a group of giant micro-electronics enterprises from home and abroad to carry out business in the city.
　　
However, insiders said that the municipal government should keep a cool head to control the mushrooming of new micro-electronics enterprises and grant priorities to medium and small-sized private companies, most of which have grasped advanced research achievements, quick market reaction and elastic operation mechanism but lack capital.
　　
(Beijing-2008 11/20/2000)