Advertisement
US-China trade war
EconomyChina Economy

China’s Zhejiang targets 3- to 7-nanometre AI chip breakthroughs to counter US chokehold

Province’s five-year plan backs national push for tech independence – but can it succeed?

3-MIN READ3-MIN
36
Listen
China is world’s largest chip manufacturer, demonstrating the country’s superiority in global supply chain. Photo: Shutterstock
Frank Chenin Shanghai

China’s eastern tech powerhouse Zhejiang, home to giants like Alibaba and the humanoid robotics start-up Unitree, has set clear targets to develop cutting-chips and chipmaking equipment over the next five years.

The province is the latest locality to prioritise innovation under its new five-year plan. It joins other hubs, including Shenzhen and Shanghai, that have thrown their weight behind Beijing’s nationwide strategy to develop indigenous technologies amid an intensifying rivalry with the United States.
Advertisement

The province will focus on chip design and wafer manufacturing, aiming to achieve rapid progress across 3- to 7-nm processing nodes, according to its draft industrial development document for 2026 to 2030.

Advanced chips have become the main pillar of income for some global tech firms, underscoring the weight of Zhejiang’s ambitions. On Thursday, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, announced that combined shipments of its 3-nm, 5-nm and 7-nm chips made up 77 per cent of its total wafer revenue in the fourth quarter of 2025.

Chips are often measured by transistor density, a term for how small and advanced a node is. A 7-nm chip contains about 90 million to 100 million transistors per square millimetre, while a more powerful 3-nm chip boasts about 200 million to 224 million.

Zhejiang also plans to develop low-power, high-end general-purpose and artificial intelligence (AI) chips, as well as fifth-generation RISC-V chip architecture, according to the document first reported by state media on Monday.

FULL EVENT: China Future Tech Webinar | The US-China chip war

FULL EVENT: China Future Tech Webinar | The US-China chip war

The province has nurtured a new breed of start-ups in AI, chips and humanoid robots in recent years, supported by a vibrant tech and innovation ecosystem and the prestigious Zhejiang University.

Advertisement
Alibaba’s semiconductor design arm T-Head, for instance, has developed an AI chip that is said to be approaching parity with Nvidia’s H20 in performance benchmarks, according to a report by state broadcaster CCTV aired earlier this month. Alibaba owns the Post.
Zhejiang’s ambitions dovetail with China’s broader pursuit of self-reliance, as it strives to break a US-led stranglehold on some critical technologies, including export controls on advanced chips and the equipment needed to mass-produce them. Beijing’s strategy shows no sign of slowing, despite the Trump administration greenlighting sales of Nvidia’s H200 AI chips from Thursday.
Select Voice
Select Speed
1.00x