In recent years, domestic chips have made significant progress in technology, market application, and the construction of industrial chain ecosystems. This is particularly evident in the fields of automotive electronics, artificial intelligence, and smart terminals, where the application of domestic chips is gradually expanding, offering more choices and optimization options for BOM sourcing.
Breakthroughs in Automotive Electronics
GAC Group has joined forces with ZTE Microelectronics, Renxin Technology, and seven other companies to develop chips and launched the "Automotive Chip Application Ecosystem Co-Building Plan". Through an end-to-end verification platform from "vehicle - controller - chip", it promotes technological collaboration. This model has broken the traditional pattern of automakers relying on Tier 1 suppliers, driving the industrial chain towards a transformation led by automakers with chip manufacturers collaborating. For example, GAC's released G-T02 chip (16Gbps SerDes chip) and G-K01 chip (RISC-V chip with ASIL-D functional safety level) have reached international leading levels in data transmission and functional safety.
Impact on BOM Sourcing
The high performance and safety requirements of automotive chips mean that the rise of domestic chips allows for more choices of domestic chips in BOM sourcing, reducing dependence on overseas supply chains and enhancing supply chain stability and cost-effectiveness.
Applications in AI
With the rapid development of AI technology, the application of domestic chips in the AI field is increasing. For example, the high-performance computing power supply chips from Jingfengmingyuan have entered mass production, with sales revenue increasing by 1402.25% year-on-year. In addition, the application of domestic GPUs in large model inference has accelerated the implementation of artificial intelligence technology in industries such as medical care, finance, and government affairs.
Impact on BOM Sourcing: AI devices have high requirements for chip computing power and energy efficiency. The performance improvement of domestic chips allows for more choices of domestic AI chips in BOM sourcing, meeting the needs of high-performance computing while reducing overall costs.
Applications in Smart Terminals
In the fields of smartphones, tablets, and smart wearable devices, the market share of domestic chips is also gradually expanding. For example, Unisoc's sales revenue exceeded 14.5 billion yuan in 2024, achieving global delivery of 1.6 billion chips. Rockchip Microelectronics is expected to achieve operating revenue of 3.1 to 3.15 billion yuan in 2024, a year-on-year increase of 45.23% to 47.57%.
Impact on BOM Sourcing: Smart terminal devices have high requirements for chip integration and power consumption. The technological progress of domestic chips in these fields allows for more choices of domestic chips in BOM sourcing, improving product cost-performance and market competitiveness.
Advantages of Domestic Chips in BOM Sourcing
Performance Improvement: Domestic chips have achieved technological breakthroughs in multiple fields, with performance comparable to international giants.
Cost-effectiveness: Domestic chips offer high cost-performance ratios, reducing BOM costs.
Supply Chain Stability: Reducing dependence on overseas supply chains enhances supply chain stability.
Technical Support: Domestic chip companies collaborate more closely with the domestic industrial chain, providing more timely technical support.
With the continuous progress of domestic chip technology and the expansion of market share, it is expected that by 2025, domestic chips will be widely used in more fields. For example, the market share of domestic automotive-grade chips in ADAS and domain controllers is expected to increase to 20%. At the same time, the application of domestic chips in emerging fields such as AI, 5G, and the Internet of Things will also expand further.
The rise of domestic chips offers more choices for BOM sourcing. Companies should actively monitor the technological progress and market performance of domestic chips, optimize BOM sourcing reasonably, and enhance product performance and competitiveness. Meanwhile, the widespread application of domestic chips will also promote the domestication of the electronics industry and enhance China's position in the global semiconductor market.