(Yicai Global) Oct. 20 -- China will increase supervision over its integrated circuit sector, a key driving force in its economic development, to promote growth and to crack down on fraudsters causing significant losses, a spokesperson for the National Development and Reform Commission said today.

The country’s burgeoning semiconductor industry raked in CNY756.2 billion (USD113.1 billion) in sales last year, up 15.8 percent from the year before. It is a strategic, fundamental and leading sector of China’s economic and social development, Meng Wei said.

However, this has also led to instances of malicious competition such as by inexperienced, technically-unqualified companies that blindly start projects and then abandon them, wasting resources.

The country’s macro-economic planner will tackle this issue and hold all trouble makers accountable for the losses they incur, Meng said.

It will continue to perfect its policy-making system, optimize the environment for the sector’s growth, regulate the market, improve the sector’s capacity for innovation and strengthen supporting industries.

The NDRC will also encourage banks, financial institutions and investment funds to lower the risks associated with major integrated circuit projects regarding investment.

Nearly 10,000 companies shifted their focus to the chip sector in the first eight months of the year, according to ChinaDataPay.

Editor: Kim Taylor