Abstract: Abstract：The irreplaceability of semiconductors and the current international political and economic situation have made how to achieve the rapid development of the semiconductor industry an urgent and important issue in China today. In 2014, the introduction of the " Outline for promoting the development of national integrated circuit industry ", which was mainly characterized by the top-level design of industrial development and the innovative increase of market-oriented policy tools, marked the development of Chinese semiconductor industry into a technologically strong growth. This stage is characterized by strengthening strengths and making up for weaknesses. From the perspective of new structural economics, the research uses the introduction of the "Outline" as a natural quasi-natural experiment, and builds a difference in differences model based on micro-enterprise-level panel data from 2012 to 2020 to empirically test the impacts of semiconductor industry policies on enterprise innovation performance. The test also considered the effects and duration of impacts, as well as different effects on heterogeneous enterprises. The research results show that the implementation of industrial policies has significant promoting effect on the innovation performance of semiconductor companies, especially exploratory innovation one. It also has a more significant positive effect on high-capital-intensive companies, non-state-owned companies, and growth-stage companies. Looking at a longer time window, the effect of the policy shows a trend of rising first and then falling situation. Therefore, it is concluded that the national large fund, investment and financing policies and other market-oriented policy tools can help the semiconductor industry to gradually transform into a comparative advantage industry; There are heterogeneity in the impacts of industrial policies on innovation of enterprises with different characteristics, and policy layout should follow the heterogeneity regulations. The promotion impacts of semiconductor industry policy on enterprise innovation performance increased first and then decreased. The early performance rise is related to the gradual emergence of policy effects and the lag of innovation output, while the subsequent decline is likely to be related to the diminishing marginal effect of direct intervention of industrial policies with the continuous improvement of the market, which should be paid attention to in industrial policy layout. The research contributions of this research are as follows. The potential comparative advantage characteristics of semiconductor industry are identified, which can be transformed into comparative advantage industry with the support of policy. The integration of the new structure economic theory into the related researches of industrial policy and enterprise innovation development provides empirical evidence for the combination of "promising government" and "effective market" proposed by the new structural economics. The function boundary of “two hands” in industrial innovation is explored by clarifying the effect of policy on heterogeneous enterprises and time effect. In addition, the conclusions of this research provide suggestions for policy making both in semiconductor and other similar industries. This research provides a new perspective and insight for studying the combination of "promising government" and "effective market" in promoting the development of industries with potential comparative advantages into industries with realistic comparative advantages, and the boundary of the role of "two hands" in industrial innovation. It also provide an reference for the country to formulate and optimize industrial policies and achieve precise policy implementation.