China is poised to make significant moves in its technological advancement, planning to issue guidance aimed at encouraging the nationwide adoption of open-source RISC-V chips for the first time. This development, reported on March 4, 2025, signifies Beijing's determination to reduce the country's dependency on Western-dominated technology, particularly as tensions with the U.S. continue to escalate.
According to sources familiar with the matter, the policy guidance concerning RISC-V chip implementation is being collaboratively drafted by eight government bodies. This includes key players such as 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. Though the precise date of release for the guidance is not confirmed, it could debut as early as this month, pending any changes to the timeline.
RISC-V, known for its open-source architecture, facilitates the design of various chip types, including those utilized in smartphones and CPUs for artificial intelligence servers. The technology is positioned as a competitor to established proprietary chip architectures such as x86, which is currently dominated by U.S. companies like Intel and Advanced Micro Devices (AMD), alongside Arm, developed under the ownership of SoftBank Group.
China's eagerness to embrace RISC-V is largely attributed to the technology's appeal as geopolitically neutral and its lower costs, making it attractive to state entities and research institutes. The growing interest from Chinese chip designers stands as evidence of this trend, even though the government has yet to make any official statements on the subject.
The rising utilization of RISC-V technology also raises eyebrows across the Pacific. Over the years, increasing friction between Washington and Beijing—especially concerning technology—has led to U.S. lawmakers expressing concerns about China's potential exploitation of open-source technology to advance its semiconductor industry. Reports from Reuters indicate American legislators urged the Biden administration to restrict U.S. companies from engaging with RISC-V technology, fearing it could unwittingly bolster China's tech capabilities.
Innovation within the RISC-V sector is gaining traction, with major firms like Alibaba's XuanTie and the startup Nuclei System Technology spearheading the charge as prominent RISC-V intellectual property providers. They are known to offer commercial RISC-V processors to chip designers, driving the adoption of this technology.
Recently, industry executives gathered at an event focused on RISC-V, organized by XuanTie, where they highlighted the role of DeepSeek—a popular Chinese AI startup—in boosting the RISC-V adoption rate. The startup's AI models can run efficiently on less powerful chips, which presents both opportunities and distinct market advantages. At the event, Sun Haitao, manager at China Mobile System Integration, noted the budgetary benefits of RISC-V technology, stating, "Even if a RISC-V solution priced at 10 million yuan might only reach about 30% of the level of NVIDIA or Huawei, buying three sets means the overall cost might still be lower. I think this is a breakthrough point."
This optimism surrounding RISC-V's cost-effectiveness and capabilities has contributed to the observed surge in the stock prices of various Chinese chip design firms. During afternoon trading on March 4, the CSI All-Share Semiconductor Products and Equipment Index saw gains of up to 2.5%. This rally resonates amid broader market conditions as domestic companies signal their readiness to embrace homegrown technologies.
The rise of RISC-V technology may help to redefine the dynamics of the semiconductor industry, especially within China. For years, Chinese tech firms were viewed through the lens of Western technology. This novel pivot toward open-source solutions could not only spur innovation but also create self-reliance within China's semiconductor sector.
While the shift toward RISC-V is seen as a strategic long-term move by China to strengthen its technology independence, it will likely remain controversial on the global front. The bipartisan unease from the U.S. signals potential ramifications for collaboration and competition—an issue worth monitoring as RISC-V continues to gain traction within China and abroad.
Overall, the anticipated guidance on RISC-V chip adoption could herald new manufacturing capabilities for China. With enhanced support from government policy and industry readiness to pivot toward this cheaper alternative, the coming months will be pivotal as the country seeks greater autonomy over its semiconductor manufacturing capabilities.