Seven foundry chipmakers have jointly submitted a letter to China's municipal governments requesting the further extension of a temporary tax exemption policy, according to a various reports from China-based media.

The participants are Advanced Semiconductor Manufacturing Corporation (ASMC), BCD Semiconductor Manufacturing, Grace Semiconductor Manufacturing, Hejian Technology, Semiconductor Manufacturing International Corporation (SMIC), Shanghai Hua Hong NEC and Taiwan Semiconductor Manufacturing Company (TSMC).

State Council's Document No. 18 was enacted in China on January 1, 2009 allowing semiconductor companies to import equipment, materials and components without paying taxes, the reports indicated. The policy, which was set to expire on July 1, was aimed to help China's local semiconductor industry to weather the global downturn.

The reports also noted that China's National Development and Reform Commission (NDRC) and Ministry of Industry and Information Technology (MIIT) are evaluating the request and mulling a new policy draft.