As the signing pen of the Chongqing International Conference Center came to a close, the strategic cooperation agreement between Puhua Basic Software and ChipCore Technology officially took effect. This alliance, aimed at building an independent automotive chip ecosystem, resonates wonderfully with the successful preparation of indium phosphide materials at the Jiufengshan Laboratory in Wuhan, thousands of miles away. Against the backdrop of the global semiconductor industry’s recovery and supply chain restructuring, Chinese semiconductors are carving out a unique development path characterized by “application-driven technology and technology feeding back into the ecosystem” through the construction of automotive-grade chip ecosystems and breakthroughs in third-generation semiconductor materials. The latest industry data shows that in the third quarter of 2025, all key indicators of the global semiconductor manufacturing industry achieved positive growth for the first time in two years, while China’s breakthroughs in automotive-grade chips and wide bandgap semiconductors are injecting a unique “Chinese momentum” into this recovery.
2025
Automotive-grade Chips: From Single Point Breakthrough to Ecological Synergy
The domestic substitution of automotive semiconductors is reaching a critical turning point from technology validation to large-scale commercial use. At the Fourth China Automotive Chip Conference held in Chongqing at the end of August, Zhang Bo, a second-level inspector of the Chongqing Municipal Economic and Information Commission, disclosed that the local area has initially built a complete automotive-grade chip industry ecosystem covering material research and development, chip design, wafer manufacturing, packaging testing, and system assembly. The core competitiveness of this ecosystem is reflected in the innovative model of “whole-zero synergy”—relying on the application scenario advantages of vehicle manufacturers such as Changan and Seres, Chongqing is promoting the accelerated development and industrialization of automotive-grade high-performance chips, sensors, and industrial semiconductors.
Safety and reliability are the passports for automotive-grade chips to enter the mainstream supply chain. The 4-channel and 16-channel automotive-grade airbag ignition drive chips launched by China Electronics Technology Group at the conference are fully aligned with the highest international standards, significantly simplifying the wiring and layout of the vehicle’s electronic system, helping automakers reduce integration costs and technical implementation difficulties. The breakthrough of such chips is of great significance, as airbag control chips belong to the automotive electronics category with the most stringent “ASIL D level” safety standards, which have long been monopolized by international giants such as Infineon and Renesas. Huang Xiaozong, deputy director of the chip technology division of CETC, revealed that this series of chips has passed AEC-Q100 Grade 0 certification and can operate stably in extreme environments from -40°C to 150°C.
Open-source architecture is becoming the key to “overtaking on the curve” for automotive-grade chips. Ma Yue, assistant vice president of ChipCore Technology, pointed out at the conference: “The open, secure, and extensible features of RISC-V are very suitable for automotive computing scenarios.” As a leading provider of RISC-V processor IP, ChipCore Technology has over 300 domestic and international customers using its processor IP, with the most rapid growth in applications in automotive electronics. Guoxin Technology has developed a new generation of mid-to-high-end MCUs based on the RISC-V architecture, achieving compatibility with old products at the bus, peripheral module, low-level drive, and operating system levels, allowing customers to achieve a “seamless transition” for upgrades. This compatibility design significantly reduces the switching costs for automakers and accelerates the adoption of domestic chips.
Ecological synergy is solving the verification challenges of automotive-grade chips. The “Automotive Control Operating System and Chip Adaptation Certification Laboratory” project launched at the conference, jointly established by Puhua Basic Software, CCID Research Institute, and other nine entities, will establish unified safety standards and verification processes to ensure full-link safety compliance from the chip level to the application level. This industrial alliance model effectively addresses the “difficulties in vehicle adoption” faced by domestic chips—by sharing testing resources and jointly formulating standards, participating companies can quickly meet the stringent regulatory requirements of the EU R155, GB/T 44495, etc., significantly shortening the product development to commercialization cycle.
2025
Material Revolution: China’s Breakthrough in Third-Generation Semiconductors
While the domestic substitution of automotive-grade chips accelerates, a more profound technological revolution is unfolding in the field of third-generation semiconductor materials. Jingcheng Electromechanical’s semi-annual report shows that the company achieved an operating income of 5.799 billion yuan in the first half of the year, making significant breakthroughs in the third-generation semiconductor business—not only successfully growing 12-inch conductive silicon carbide crystals, breaking the technical barriers of large-size silicon carbide substrates, but also significantly expanding the global customer validation range for its 8-inch silicon carbide substrates, having obtained batch orders from some international customers. This marks a critical stage for China in the field of silicon carbide materials, moving from laboratory research to large-scale production.
The collaborative innovation of equipment and materials constitutes the core driving force for technological breakthroughs. While strengthening the market promotion of 8-inch silicon carbide epitaxy equipment and 6-8 inch silicon carbide thinning equipment, Jingcheng Electromechanical is also advancing customer validation for key equipment such as silicon carbide oxidation furnaces, activation furnaces, and ion implantation equipment. This “equipment-material” linked development model has reduced the cost of domestic silicon carbide substrates by about 30% compared to imported products, providing downstream applications with a more cost-effective choice. To match global market demand, Jingcheng Electromechanical is simultaneously constructing 8-inch silicon carbide substrate industrialization projects in Penang, Malaysia, and Yinchuan, enhancing both technological and scale advantages.
Power device companies are continuously making breakthroughs in the application of silicon carbide (SiC) and gallium nitride (GaN). Star Semiconductor’s operating income in the first half of the year was approximately 1.936 billion yuan, a year-on-year increase of 26.25%. Its self-developed automotive-grade second-generation SiC MOSFET chips have begun to be shipped in bulk, covering multiple voltage levels of 750V, 1200V, 1400V, and 1500V, corresponding to the main electrical drive projects of 400V, 800V, and 1000V voltage platforms. Notably, the company’s automotive-grade GaN drive modules have been designated for the main motor controller platform, expected to enter the vehicle application phase in 2026, further enriching the selection of power devices for domestic new energy vehicles.
New breakthroughs have also been made in the field of compound semiconductor materials. The Jiufengshan Laboratory in Wuhan recently announced significant technological breakthroughs in indium phosphide (InP) materials, with key performance indicators reaching international leading levels. This is the first time in China that a coordinated application of domestic core equipment and key materials has been achieved in the large-size indium phosphide material preparation field. As a core material for manufacturing high-frequency, high-speed optoelectronic devices, the domestic breakthrough in indium phosphide will strongly support device innovation in fields such as 5G communication and data centers. The Jiufengshan Laboratory, established less than three years ago, has attracted 570 global industry partners, forming a sizable semiconductor material innovation cluster.
2025
Reconstructing Competition: China’s Coordinates in Global Recovery
The global semiconductor industry’s recovery provides a strategic window for China’s technological breakthroughs. The latest SEMI report shows that in the third quarter of 2025, all key indicators of the global semiconductor manufacturing industry achieved quarter-on-quarter positive growth, with investment in the storage sector increasing by 34% quarter-on-quarter, and the installed capacity of wafer fabs reaching 41.4 million 300mm wafer equivalents, with industry capital expenditure expected to grow by 27% in the fourth quarter. This recovery trend resonates with China’s breakthroughs in automotive-grade and third-generation semiconductors, accelerating the restructuring of the global industrial chain.
The differentiated competitive paths of the semiconductor industries in China and South Korea are becoming increasingly clear. South Korean companies maintain an advantage in advanced storage fields such as HBM4, while China is building unique competitiveness in the automotive-grade chip ecosystem and wide bandgap semiconductor materials. Liu Huaisong, director of the industrial department of CETC, has a strategic layout that is quite representative: focusing on overcoming key core technologies, optimizing and enhancing the independent supply of the industry, and jointly building an open cooperative ecosystem. This “technology-supply-ecosystem” trinity development strategy is forming an effective path for differentiated competition with international giants.
The rise of the RISC-V architecture may reshape the power dynamics of the global semiconductor landscape. In the automotive chip field, RISC-V is challenging the traditional advantages of the ARM architecture, with technological breakthroughs from companies like Guoxin Technology and ChipCore Technology allowing China to gain a first-mover advantage in this emerging track. As automotive-grade RISC-V chips are scaled up for applications in smart cockpits and autonomous driving, Chinese semiconductors are expected to gain greater influence in the open-source ecosystem, echoing breakthroughs in materials such as silicon carbide and indium phosphide, together forming a dual guarantee for technological independence.
From the automotive chip ecosystem alliance in Chongqing to the material laboratory in Wuhan, the Chinese semiconductor industry is undergoing a profound transformation from “technology following” to “ecosystem defining.” As 12-inch silicon carbide substrates emerge from the laboratory and RISC-V chips enter households, these breakthroughs are not only rewriting the rules of industrial competition but also injecting a “Chinese rhythm” into the global semiconductor recovery process. Driven by the dual forces of automotive electrification and energy revolution, the collaborative development of automotive-grade chips and third-generation semiconductors is pushing Chinese semiconductors to higher value segments of the global industrial chain, ushering in a new era led by application innovation and technological breakthroughs.