Under the multiple dilemmas of semiconductor such as technology being "necked", investment and market restrictions, it is of special significance for China to enhance the international competitiveness of semiconductor enterprises by improving their business model innovation capability of semiconductor enterprises through industrial policies. Using two mainstream policies, theoretical and empirical analyses of the policy effects of business model innovation of semiconductor companies are conducted using two common policies: tax incentives and government subsidies. Based on the data of listed Chinese semiconductor enterprises from 2015 to 2021, the following conclusions are drawn from the construction of a two-way fixed effects model. First of all, the increase of tax incentives is conducive to promoting the innovation of the business model of semiconductor enterprises. Financing constraint plays a partial mediating role in this process, and the role of market competition regulation is not significant. In the next part, there is an inverted U-shaped relationship of rising first and then falling between government subsidies and business model innovation of semiconductor enterprises, the financing constraints plays a fully mediating role, while enterprise rent-seeking has a partial mediating role. Market competition effectively regulates the inverted U-shaped relationship between government subsidies and business model innovation, making the inflection point of the curve shift to the left and the curve shape smoother.