Pudong has promoted the development of its six major core industries - chip making, innovative drugs, aviation, new energy vehicles, smart manufacturing and big data - since the strategy was put forward in 2018.

The latest achievements, development goals and measures to promote these industries were unveiled at a news conference held on June 2.

These key industries have showcased leading and supporting functions, and have achieved a leap in industrial scale, energy level and core technologies.

Pudong's industrial economy got off to a good start this year, posting good results in the first four months of this year and putting the area in good stead to achieve the annual goal of having an industrial output value exceeding 1 trillion yuan ($156.61 billion).

1. Chip making industry

During the 13th Five-Year Plan period (2016-20), Pudong New Area's IC industry sales doubled, accounting for 71 percent of the city's total. Nine companies were listed on the Science and Technology Innovation Board.

This year, Pudong’s integrated circuit companies continued their rapid growth, with revenue in the first quarter increasing by 19.9 percent, which was higher than the national growth rate of 18.1 percent and the city's growth rate of 16.9 percent.

The chipmaking industry features domestic leading technologies and advanced design. The 14-nanometer chip manufacturing process has achieved mass production, and the 5-nanometer etching equipment has been applied to the world's advanced integrated circuit production lines.

JCET Group, the world's leading integrated circuit manufacturing and technology services provider, has established its design service business center and automotive electronics business center in Pudong. Projects by ACM Research, Huahong Group and iRay Technology won the first prize at the Shanghai Science and Technology Progress Award.

Pudong has formed an IC industry chain integrating EDA tools, core product design, advanced manufacturing, equipment materials, and high-end packaging and testing services. It is one of the industrial clusters with the most concentrated IC industry, the highest comprehensive technology level and the most complete industrial chain in China.

Two of the world's top 10 foundry wafer manufacturers and two of China's top five semiconductor equipment manufacturers are headquartered in Pudong. Seven of the world's top ten chip design companies have also established regional headquarters and R&D centers in Pudong.

Projects to establish the headquarters or R&D center projects of Infineon, NextVPU, Soplan Technology, Alibaba, Andes Technology, JLQ Technology were signed in December last year. Other major projects involving SMIC, HLMC Phase II, Galaxycore, Wingtec are also progressing smoothly.

2. Innovative drugs industry

Pudong is one of the regions in China with the highest concentrations of biomedical innovation personnel and research and development institutions. The area also boasts a complete innovation chain, outstanding innovation achievements and the most complete industrial system in China.  

Pudong has produced 15 percent of China’s original new drugs and 10 percent of China’s innovative medical devices. There are more than 500 types of drugs under research, and nearly 200 Class 1 new drugs have entered the clinical stage. More than 10 Class 1 new drugs are in the market application stage.

At the beginning of the year, one Class 1 new drug by Shanghai Allist Pharmaceutical Technology Co received marketing approval by the authorities. There are more than 80 upstream and downstream companies in the cell therapy field. Pudong accounts for one-third of the nearly 50 cell therapy clinical applications that have been approved by the country.

During the 13th Five-Year Plan period (2016-20), a total of seven Class 1 new drugs produced by biomedicine companies in Pudong were approved for marketing. The industrial scale showed a steady upward trend, with the total industrial output value increasing at a compound annual growth rate of 10.6 percent from 41.858 billion yuan to 62.602 billion yuan.

By the end of 2020, several outstanding enterprises and unicorns from various segments of biomedicine had emerged in Pudong, and seven companies based on the area were listed on the Science and Technology Innovation Board.

Pudong has enhanced the systems for drug marketing authorization holders and medical device registrants. Thirty-two applicants have applied for 51 varieties, of which 31 are new Class I drugs. Twelve medical device products by nine applicants have been approved for marketing. The Yangtze River Delta Sub-center of the National Drug and Medical Device Review and Inspection has been set up in Zhangjiang, also known as China's pharma valley.

In the first four months of this year, about 58 companies in Pudong New Area received capital investment or went public. The total financing amounted to more than 14 billion yuan, and the amount and number of IPOs increased by 2.6 times year-on-year.

3. Aviation industry

Relying on the driving role of the two major players in China's civil aviation industry - Commercial Aircraft Corporation of China and Aero Engine Corporation of China - Pudong New Area's civil aviation industry has jumped from a scale of less than 1 billion yuan in 2016 to 10 billion yuan in 2020, growing at an average annual rate of 20.5 percent.

The ARJ21 regional airliner has been put into operation, and as of May this year, 50 of these planes have been delivered and used to transport 2.5 million passengers.

The C919 large passenger aircraft has obtained the Type Inspection Approval (TIA) and has officially entered the test flight phase. The first aircraft will be delivered this year.

The CR929 wide-body passenger aircraft project is making steady progress. The overall design was completed in 2020 and the construction of the first major component will start this year.

The Shanghai Zhuqiao Aviation Industrial Park and the Big Aircraft Innovation Valley have sped up its development. Since its launch at the end of 2019, more than 20 projects have been signed and implemented. These projects involve fields such as aviation R&D and manufacturing, aviation tooling and interior decoration, aviation logistics and supply chain management services, aviation finance and aviation culture and innovation.

4. New energy vehicles industry

In 2020, the total industrial output value of the automobile manufacturing industry increased by 31.6 percent over the previous year, accounting for 38.9 percent of the city's total.

In the first four months of this year, the automobile industry continued to maintain rapid growth. The output value of GM, Tesla and SAIC Motor increased by 87.5 percent, 402.1 percent and 44.4 percent respectively. The annual output value of the industry is expected to exceed 300 billion yuan.

The total output value of new energy vehicles in Pudong New Area increased by four times from January to April, accounting for more than 80 percent of the city’s total.

The Tesla project is progressing smoothly and Model Y has been fully put into production. The smart electric vehicle joint venture "Zhiji" was launched by Pudong New Area and SAIC Motor in Zhangjiang. The Zhiji L7 was released at the Shanghai Auto Show and will be delivered by the end of the year.

The first phase of the Jinqiao Intelligent Connected Vehicle City Open Test Road, which is 29.3 km long, was officially opened, becoming the first open test road for autonomous driving in central Shanghai.

Compared with Jiading and Lingang, Jinqiao Road has obvious urban road characteristics, with large traffic flow, many entrances, more complete roadside facilities and higher intellectualization of signal light control.

5. Smart manufacturing industry

Pudong New Area has the world's latest LNG carrier, the world's largest and most advanced LNG bunkering ship, the world's first 23,000-TEU,  dual-fuel-powered, ultra-large container ship, and the world's first general-purpose FPSO with self-propelled capability.

By the end of May this year, construction of the first domestically built large luxury cruise ship has reached 86 percent, while the hull was 62 percent completed. The hull will be lifted by the end of this year and delivered in 2023. The cruise supply chain company completed the acquisition of the German interior decoration company R&M in the first quarter.

The Zhangjiang Robot Valley and Jinqiao Robot Industrial Park have formed a world-class robot technology innovation center and a new model for discrete intelligent manufacturing. The Discrete Automation Industry Innovation Alliance was established in Pudong.

By implementing the Shanghai Special Action Plan for Building 100+ Smart Factories (2020-2022), eight companies in Pudong New Area were shortlisted for Shanghai Smart Factories in 2020, accounting for 40 percent of the city’s total. During the year, the online evaluation of smart factories of 450 companies will be completed.

6. Big data industry

Several leading companies have emerged in Pudong’s software and information service industry, which boasts high output, high growth and high value-add. By the end of 2020, there were nine software information service companies listed on the Science and Technology Innovation Board. A total of 39 companies in Pudong were included in the "Shanghai Top 100 Software Companies" listing.

Pudong New Area has actively promoted the construction of the first national artificial intelligence innovation application pilot area, opened up unique application scenarios, and formed a complete artificial intelligence innovation chain from basic research and key technology research to product development and industrial applications.

At present, more than 90 companies and 4,000 staff have settled in the Zhangjiang Artificial Intelligence Island.

The new online economy is beginning to bear fruit. The Hema offline X member store was included in the first batch of national information consumption experience centers. Liang Changlin of Dingdong Maicai, Hou Yi of Hema Xiansheng and Cheng Wu of China Reading Group were shortlisted as the 2020 Shanghai Online New Economy Person of the Year. Leng Jing of Aikucun won the nomination.

Development goals for six major core industries

Chip making: whole chain industrial system with global competitiveness

Pudong will build the Zhangjiang National Integrated Circuit Industrial Base and Lingang Integrated Circuit Industrial Base into international leading IC design industrial parks. It will overcome challenges related to EDA tool supply, core chip design, advanced manufacturing technology, key equipment research and development, basic material support and high-end packaging.

It will also cooperate with the Yangtze River Delta to create a world-class IC industry cluster.

Innovative drugs: highland of global excellence in R&D and manufacturing

Buoyed by the construction of an innovative drug industry base and a medical device industry base, Pudong aims to be a leading force in China in developing the fields of antibody drugs, tumor vaccines, cell therapy, high-end diagnostic reagents, high-end interventional implant devices, and surgical robots.

By 2025, the number of first-class new drugs and innovative medical devices on the market is expected to increase substantially, and the contribution of innovative drugs to the biomedical industry will increase by more than 30 percent.

Aviation: national strategic core area for large aircraft

Pudong will serve the national strategy for the development of large aircraft. The C919 will enter mass production, the CR929 will enter a new stage of flight test verification and certification, and domestic commercial engines are poised to enter the assembly phase.

Shanghai will build a regional civil aviation supporting industry system, develop Pudong into a leading center for aviation innovation and high-end industry, and achieve significant development in Pudong's aviation industry.

By 2025, exponential growth in industrial scale, product delivery and newly established enterprises will be achieved.

Future vehicles: smart-driven industry chain cluster led by new energy vehicles

Pudong will take advantage of new energy vehicle makers such as Tesla and Zhiji to deploy core parts supporting industries, promote the demonstration and industrialization process of intelligent connected vehicles, and further promote the technologies of existing traditional vehicles.

It will initiate a cross-border integration of intelligent networks and new energy vehicle industry systems.

By 2025, the total output value of the auto industry will account for more than 40 percent of the city’s total.

Smart manufacturing: highland of intelligent manufacturing industry with global influence

Pudong will give full play to its industrial advantages of shipping and marine engineering. It will use the construction of the first domestic large luxury cruise ship as an opportunity to achieve major breakthroughs in key technologies of high-end ship manufacturing.

Pudong will also focus on the construction of the Jinqiao Robot Industrial Park and the Zhangjiang Robot Valley, and promote major breakthroughs in robot core components and key technologies. By 2025, the industrial scale and robot output value will be double that of the present.

Big data: digital economy innovation source and global data service center

Pudong will promote the digitalization of the city and inject a strong data driving force into its industrial economy based on the high output, high growth and high value-added characteristics of the software information service industry.

Backed by the construction of the country’s first artificial intelligence innovation application pilot zone, Pudong will give full play to its advantages in financial data, computing power algorithms, system innovation and application scenarios.

It will capitalize on the rapid development of the online new economy, continue to improve the level of industrial empowerment and form a data industry cluster with global influence.

Measures for the next stage of development

In its next stage of development, Pudong will take the opportunity of building a leading area for socialist modernization to create a modern and open industrial system that is driven by innovation, led by high-end industries and integrated with industrial clusters.

First, Pudong will accelerate breakthroughs in key core technologies and address key shortcomings in the fields of high-end chips, aero engines, high-performance medical equipment and core components.

It will build a number of high-level scientific research institutions, advance the layout of industrial technology frontiers, accelerate the transformation of scientific and technological achievements into actual productivity and actively participate in global cooperation and competition.

Second, Pudong will improve the modernization level of the industrial chain. It will introduce and cultivate high-tech and high-growth leading enterprises, support enterprises in a new round of major projects, and gather a group of key supporting enterprises in the industrial ecosystem.

Through this overall drive and supporting measures, it will build a complete industry chain with international competitiveness.

Third, Pudong will build a high-level industrial highland. It will focus on key industrial areas, create a number of industrial parks with international influence and competitiveness, and promote the development of clusters with high-quality industrial carriers.

It will promote the high-quality development of industrial parks such as Shanghai IC Design Industrial Park, Oriental IC Port and Zhangjiang Innovative Medicine Industrial Base. It will also accelerate the construction of aviation industrial parks, large aircraft innovation valleys and Zhangjiang Robot Valley.

Fourth, Pudong will strengthen innovation and breakthroughs in industrial development. It will give full play to the advantages of system integration and innovation in the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone, increase support for R&D innovation, and improve licensing and customs clearance for biomedicine.

It will also improve the coordinated development in the Yangtze River Delta to build world-class industrial clusters.