In the last decade, China has been working hard to produce homegrown semiconductors. Its efforts have led to the creation of advanced chips, including the first DPU chip. These chips are expected to play an important role in the burgeoning cloud computing services market in the country.
The Chinese government has supported the development of the chip industry. This has helped to establish a localized ecosystem that has allowed China’s processors to have wider use. It also allows Chinese companies to build secure supply chains. As a result, many Chinese consumer electronics OEMs have begun to ramp up their efforts to enter the chip industry.
Among the most popular companies in the industry is Jaguar Microsystems. JaguarMicro is based in Shenzhen and is focused on developing and commercializing data processing units. Its DPUs are designed for storage, networking and virtualisation applications. They free up server CPUs for other workloads. One of its major investors is Tencent Holdings. Another is Sequoia Capital China. Both have a stake of about 24 percent.
Another Chinese company, YUSUR, has been actively developing a revolutionary DPU chip. Known as K2, the chip has a size of 28 nanometres and has an ultra-low latency of 1.2 microseconds. This makes it ideal for high-speed computing and data centres. Moreover, its cheap cost and power efficiency makes it a viable choice for applications in banking.
Several fabless chipmakers in China have started developing homegrown chips. Currently, the nation’s market share in the global fabless semiconductor segment is 16 percent. That puts it behind the US and Taiwan. But China has the potential to catch up in a few years if it is given a national priority.
Ma Jihua, a veteran industry analyst, recently spoke about the development of the Chinese chip industry. He said that China has been moving in a positive direction in the industry and that its market share is on the rise. However, China still needs to make significant improvements to its chips. Some of the key challenges include the shrinking of features, conductors and conductor sizes. Those are likely to be some of the main areas that YUSUR would focus on.
YUSUR is part of the Chinese Academy of Sciences and is a leader in the homegrown semiconductors industry. The company is also known for its innovative ability.
YUSUR’s K2 chip has been developed by a group of researchers and is the first DPU chip that has been developed in China. While the chip has not yet been subjected to a third-party review, it is expected to be the next big innovation in chip development.
While China’s own equipment makers are not instant replacements for US counterparts, they will eventually start to play an important role in the industry. According to Ma Jihua, the chip sector in China is closely followed.
While the US ban on purchasing equipment from the EU has imposed a stifling effect on advanced chip manufacturing processes, it has not affected China’s chip production. Instead, it has fueled diversification efforts away from US firms.