Key Points
- China is preparing to release official guidance promoting RISC-V chip adoption nationwide. Eight major government agencies are involved in the initiative.
- RISC-V offers a low-cost, geopolitically neutral alternative to Intel’s x86 and Arm architectures.
- The U.S. has expressed concerns about China’s growing use of RISC-V and may impose restrictions.
- AI developments in China could further drive RISC-V adoption, especially for cost-sensitive businesses.
China is set to introduce official guidance to encourage the adoption of open-source RISC-V chips nationwide, marking a significant step in reducing its reliance on Western-owned semiconductor technology. Two sources familiar with the matter revealed that the policy, which is currently in the finalization stage, could be released as soon as this month. However, the timeline remains subject to change.
Eight key government agencies are developing the initiative, including the Cyberspace Administration of China, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the China National Intellectual Property Administration. These agencies have not provided official comments on the matter.
The announcement has positively impacted Chinese semiconductor stocks, with the CSI All-Share Semiconductor Products and Equipment Index rising by 2.5%. Several companies saw substantial gains, including VeriSilicon, which surged by 10%, and ASR Microelectronics, Shanghai Anlogic Infotech, and 3Peak, which experienced increases of 8.6% to 15.4%.
RISC-V is an open-source chip architecture used in various processors, from basic smartphone chips to CPUs for AI applications. It competes with the more established x86 architecture, which is dominated by U.S. companies like Intel and AMD, and Arm Holdings, owned by Japan’s SoftBank Group.
In recent years, China has embraced RISC-V as a geopolitically neutral technology, allowing state institutions and research bodies to design chips with lower costs and reduced reliance on foreign suppliers. Despite its growing popularity, China has not yet incorporated RISC-V into its national policy.
The United States has raised concerns over China’s increasing focus on RISC-V. In 2023, some U.S. lawmakers pressured the Biden administration to limit American companies’ involvement in RISC-V development, fearing China could leverage the technology to enhance its semiconductor sector.
China’s leading RISC-V companies include Alibaba’s XuanTie and Nuclei System Technology, which sell commercial RISC-V processors to chip designers. Experts believe adopting RISC-V in China could accelerate AI advancements as firms seek cost-effective solutions for AI workloads.
Sun Haitao, a China Mobile System Integration manager, emphasized RISC-V’s potential, stating that while its AI chips may only reach 30% of NVIDIA or Huawei’s performance, their lower costs make them attractive alternatives.
