Nantong's tax bureau used tax big data to map out how the AI boom is rippling through the local economy. In the first half of 2026, sales revenue in upstream non-ferrous metal smelting rose 29.6% year on year, computer and communication equipment manufacturing grew 46.8%, and fiber-optic, lithium-battery and cable makers jumped between 42% and 102.3%. Tax authorities grouped firms along the AI supply chain and offered one-on-one guidance. Langfeng New Materials, a maker of nanocrystalline soft magnetic parts, wanted to expand capacity but lacked financing; tax officials helped it keep filings compliant so its A-level tax credit lifted its borrowing limit and the expansion went ahead. Jiangdong Electronic Materials, which makes high-end copper foil for AI computing, has claimed over 58 million yuan in R&D super deductions over three years, raised its foil yield by 3 percentage points and saw AI-related orders grow more than 50%. Jiangsu Shengyi in Tongzhou district, a high-frequency copper-clad laminate maker, posted first-half revenue of 690 million yuan, up 64%, with orders booked into 2027. Dinghong Electric in Hai'an, which supplies power equipment to computing centers, had its invoice credit limit raised after orders surged. Zhongtian Technology Submarine Cable enjoyed 89.44 million yuan in high-tech enterprise income tax relief and 185 million yuan in R&D deductions in 2025. Nantong tax authorities say they will keep tailoring tax incentives to the AI industry and strengthen compliance guidance across the chain.
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Jiangsu tax data decodes ripple effects of AI industry chain
Nantong tax authorities used tax invoice data to trace how the AI boom ripples through the local economy. In the first half of 2026, sales revenue of upstream non-ferrous metal smelting grew 29.6% year on year, computer and communication equipment manufacturing rose 46.8%, while fiber-optic, lithium battery and cable makers grew between 42% and 102.3%. Tax officials offered tailored services to AI supply-chain firms, helping them standardize R&D expense filings, claim super deductions and high-tech enterprise tax breaks, and leverage good tax credit to secure financing for capacity expansion, turning tax incentives into funding for materials innovation feeding AI server supply chains.
2026-09-04