The software and Integrated Circuits(IC)Industry is the kernel of ICT,special to the development of ad- vanced and new technical industries.Some industrial policies are favorable for the industrial development,such as"Pol- icies for encouraging the development of software industry and integrated circuit(IC)industry"(the document 18 for short).However,those policies don't adapt to the development anymore,specially after the dispute between China and US of Regarding China's Value-Added Tax on Integrated Circuits.Regarding the connotation and characteristic of le- galization of industrial policy,this paper brings forward that legalization of industrial policy should include both essential and formal side.Besides,Chinese government should step out the legalization of industrial policy and legislate to pro- vide steady legal environment for the development of industry.