In 2024, China's chip industry reached a turning point - its export volume exceeded 1 trillion yuan for the first time, completely stepping into the global spotlight. In the face of external blockades and technological suppression, China has managed to forge a path of independent innovation.

It was in this year that China resolutely cancelled a chip import order worth 350 billion yuan, directly declaring to the world: We not only know how to buy, but also how to manufacture! From being passively attacked to actively counterattacking, China's self-developed chips are setting off a new chessboard, not only changing the domestic technological landscape but also reshuffling the global market.

The chip industry has turned the tide

Over the past few years, the United States has been increasingly pressing down on China's technology sector. From adding Huawei and ZTE to the "Entity List" in 2018, to the introduction of the "Chips and Science Act" in 2022, and then to further tightening restrictions on the export of high-end chips in 2024, the United States' aim is clear: to strangl the lifeblood of China's technology and curb our development in key areas such as 5G and artificial intelligence.

However, China did not just sit and wait for its fate. Instead, it treated the chip industry as a tough battle and elevated it to the height of a national strategy.

The cancellation of the 350 billion yuan order in 2024 is definitely a major move. Behind this lies the comprehensive breakthroughs made by domestic chips in design, manufacturing, storage and other links. Data shows that China's chip production is expected to exceed 400 billion units in 2024, with export value reaching 1 trillion yuan, representing a year-on-year growth of 20.3%. Our chips can not only meet our own needs but also be sold all over the world!

In recent years, the country has also made great efforts. In 2024, the third phase of the National Integrated Circuit Industry Investment Fund (Big Fund) will invest 344 billion yuan, focusing on key areas such as lithography machines and design software that are "bottleneck" issues. Shanghai Microelectronics' 28-nanometer lithography machine has already entered mass production, and the 7-nanometer equipment is also expected to be completed by 2026.

Although there is still a certain gap compared with the world's top level, we have managed to overcome the tough challenges by relying on our own technology. Smic's 14-nanometer chips have a yield rate of over 95%, and its 7-nanometer chips are also making steady progress. These achievements all give the company more confidence to cancel the 350 billion yuan order.