On August 7, at the 2020 Summit of the China Informatization Hundreds, Huawei’s consumer business CEO Yu Chengdong said that due to US sanctions, Huawei’s Kirin high-end chips became a peak work after September 15.

Under the background of successive US sanctions on Huawei chips, the importance of accelerating the development of its own core technology is highlighted. Recently, the State Council issued Several Policies to Promote the High-quality Development of the Integrated Circuit Industry and Software Industry in the New Era, which stated that China’s chip self-sufficiency rate will reach 70% by 2025, while in 2019 it is only about 30%.

China customs statistics show that our country’s chip imports in 2019 amounted to US$304 billion, far exceeding the second-ranked crude oil imports. Although the overall chip import value was very large last year, it was a decrease of US$8 billion compared with the import value of 2018, a year-on-year decrease of 2.6%. Industry insiders believe that the development of domestic chips is accelerating. Under the vigorous promotion of policies, the chip industry has a lot of room for domestic substitution, and the marketization of the entire domestic chip industry also has a lot of room for improvement.

According to the wind chip index, as of the end of July, the cumulative increase in the chip index this year reached 49.46%. In the A-share market, the market value of SMIC’s stocks listed on the Science and Technology Innovation Board in July has exceeded 200 billion yuan, and the value of the stock market of companies such as Weir shares and Wingtech has exceeded 100 billion yuan.

Industry insiders believe that the sales revenue of our country’s integrated circuit industry in 2019 is 756.22 billion yuan, and the sales revenue of our country’s integrated circuit industry is expected to exceed 900 billion yuan in 2020. Benefiting from the overall industry boom, the chip industry will continue to maintain rapid development speed.

In May of this year, the United States announced the second round of sanctions against Huawei: Any company that supplies semiconductor products containing US technology to Huawei must first obtain an export license from the US government. After the ban was announced, there was a 120-day buffer period, and it came into effect on September 15.