Chongqing Municipality, located in southwestern part of China, will establish the nation's first 3G industrial base with an estimated sales volume of RMB100 billion in three years, a local newspaper reported on Thursday.

The 3G base will focus on the research and development of TD-SCDMA technology, which will be adopted by China Mobile Ltd<941>, the country's largest mobile operator. The base will conduct the entire process from chip development, terminal device manufacturing to marketing, according to the report.

The municipal government will enact some preferential policies to facilitate the base's development, including providing factory space and office buildings to investors, reducing corporate income tax to 15%, refunding 40% of the individual income tax, establishing a national 3G authenticating and testing center, and offering financial support.

The 3G industrial base has attracted 18 projects with a total investment of RMB 15.63 billion from the world's leading technology firms like IBM and Infineon, said the report.

The TD-SCDMA subscribers in China are predicted to hit 10 million in 2009 since China Mobile launched TD-SCDMA service in 38 cities, according to earlier media reports.