RISC-V CPU Launch by Alibaba Signals Chip Shift in China

While China’s semiconductor sector has advanced considerably over the past two decades, the increasingly stringent restrictions from Western nations have highlighted an urgent need for greater technological independence. Recently, innovators like Alibaba’s Damo Academy have unveiled noteworthy breakthroughs in RISC-V-based chip design, signalling the country’s accelerating efforts to establish a self-reliant semiconductor supply chain.

What key obstacles does China’s semiconductor industry face in its drive toward autonomy, what solutions are emerging from domestic research and development, and how might these open-source initiatives reshape not only China’s technological landscape but also the global semiconductor market?

Navigating the Semiconductor Landscape: A Decade of Challenges for China

The past decade has seen China face numerous challenges in its semiconductor industry, with the country's technological ambitions being a major driving force. In the late 1990s and the early 2000s, China recognised the importance of the semiconductor industry for both national security and economic growth, but its early efforts were hindered by technological gaps, a lack of expertise, and inadequate infrastructure. As a result, the country had to rely on Western technology and expertise, importing advanced chips and manufacturing equipment while partnering with foreign companies in order to gain access to knowledge, intellectual property, and other essential components.

Geopolitical Pressures and the Rise of Export Controls

However, in the past decade, one of the major obstacles faced by China has been the restrictions imposed by Western nations, particularly the US. As China's ambitions in the semiconductor industry grew, Western countries became increasingly concerned about the potential risks associated with China's technological advancements. In response, the US imposed (which are still in effect as of 2025) a range of export controls and trade restrictions that aimed to limit China's access to advanced semiconductor technologies.

These restrictions included the blacklisting of key companies such as Huawei and Semiconductor Manufacturing International Corporation (SMIC), which severely impacted China's ability to acquire cutting-edge semiconductors, manufacturing equipment, and essential tools such as electronic design automated (EDA) software. Additionally, the US pressured its allies, including Japan and the Netherlands, to restrict the sale of advanced lithography machines, software, and other critical components to China. As a result, Chinese companies found themselves unable to produce high-end semiconductors and were forced to seek alternative solutions.

The restrictions imposed by the US also had a significant impact on China's semiconductor research and development (RD) efforts. Without access to the latest equipment and materials, Chinese firms struggled to develop advanced semiconductor technologies, which are essential for producing high-performance chips. Furthermore, the restrictions limited China's ability to participate in global technology ecosystems, making it difficult for Chinese companies to collaborate with Western firms and access cutting-edge technologies.

In contrast, Western countries were able to capitalise on their technological lead, making significant breakthroughs in semiconductor design and manufacturing. Companies such as NVIDIA, AMD, and Intel continued to push the boundaries of chip performance, while TSMC, Samsung, and other leading semiconductor manufacturers solidified their positions as industry leaders. As a result, a significant gap developed between China's domestic industry and the global semiconductor leaders.

Closing the Gap: China’s Push for Semiconductor Self-Sufficiency

Faced with these challenges, China intensified its efforts in the semiconductor industry, allocating billions of dollars in funding and encouraging domestic companies to develop indigenous chip designs and fabrication processes. However, achieving self-sufficiency in semiconductors is a complex and resource-intensive process that requires not only capital investment but also deep technical expertise and skilled talent.

In addition to investing in domestic R&D, China also sought to establish closer relationships with countries that were less aligned with US policies, such as Russia. However, despite these initiatives, China continued to face significant challenges in the semiconductor industry, including a lack of access to advanced technologies, a shortage of skilled talent, and a limited domestic market.

Turning Inward: Embracing Open-Source as Strategic Leverage

In response to the numerous restrictions imposed by the West, China has shifted its focus towards open-source technologies as a vital strategic alternative. One of its most significant developments has been the adoption of RISC, an open-source instruction that provides a viable alternative to proprietary architectures such as ARM and x86.

However, the transition to open platforms has not been without its challenges. The open-source environment requires extensive collaboration and community involvement, and China has faced difficulties in creating an environment that fosters rapid technological progress. Furthermore, while RISC-V provides a viable alternative to existing instruction sets, the development of high-performance chips based on these architectures is a complex and resource-intensive process. 

Alibaba To Ship High-Performance Server RISC-V Chip In China

Alibaba Group's research arm, the Damo Academy, has recently announced the development of their first server-grade chip using the open-source RISC-V architecture. This chip, called the C930, is part of Alibaba's series of XuanTie chips that utilise the RISC-V architecture. The C930 is designed for high-performance computing and is set to be shipped to customers in March of this year. 

According to Damo Academy, the C930 represents a major milestone in China's chip innovation roadmap, standing as the first RISC-V-based processor in the XuanTie series designed specifically for high-performance server applications. The development aligns with Alibaba’s broader ambition to play a central role in the global transition to open-source hardware ecosystems.

The development of the C930 is part of a larger plan by Alibaba to invest at least 380bn yuan (the equivalent of $52bn) in AI and Cloud infrastructure over the next three-year period.

Strategic Investment to Bolster Domestic Chip Ecosystems

This strategic investment follows Alibaba’s recently disclosed commitment of at least 380 billion yuan (US$52 billion) into artificial intelligence and cloud infrastructure. As reported by the South China Morning Post, the investment is intended to accelerate the adoption of domestic technologies amid global supply chain uncertainty and support the implementation of domestic RISC-V chip designs across data centres.

This investment will see the construction of new data centres and the deployment and use of AI chips, including the C930. Alibaba stated that this investment is in response to the increasing demand for AI technology, which has seen a significant rise in popularity in China, particularly with the success of the start-up DeepSeek in early January.

The development of the C920 is also a result of the increasing restrictions being placed on China by the US. In recent years, the US has introduced numerous export sanctions on Chinese companies, including Huawei, in an attempt to prevent China from developing key technologies, including AI. In response to these restrictions, China has been actively trying to develop its own semiconductor supply chain that is independent of US technology. 

Damo Academy underscored its leadership within the RISC-V ecosystem, noting that its XuanTie team had contributed to over 30% of high-performance RISC-V processor deployments globally. This reinforces the strategic pivot away from reliance on proprietary instruction sets such as x86 and ARM, both heavily restricted under US export controls.

RISC-V as an Open-Source Alternative to Proprietary Architectures

The use of RISC-V technology in the C930 is also significant as it is an open-source architecture. This means that anyone can modify and use the technology, which is very different to other processor technologies, such as Intel's x64 and ARM's RISC architecture. The use of open-source technology can also help to reduce the cost of developing new technologies, which can be beneficial for companies looking to develop new products. 

The C930 leverages the benefits of the Reduced Instruction Set Computer (RISC) design philosophy to streamline processing tasks while maintaining scalability. Unlike Intel’s x86 architecture, which remains closed-source and highly complex, RISC-V enables faster prototyping and adaptability across verticals, including cloud-native infrastructure and edge AI applications.

In addition to the C930, Damo Academy also announced plans to develop future XuanTie chips, including the C908x for AI acceleration, the RA908x for automotive applications, and the XL200 for use in high-speed interconnects. The development of these chips will also help to improve China's ability to develop AI technologies, which are becoming increasingly important in modern society. 

Future models such as the C908X and XL200 are aimed at addressing specific use cases including AI acceleration and high-speed interconnection. These chips are expected to form a foundational part of Alibaba's strategy for deploying decentralised intelligence across sectors like autonomous driving and large-scale server farms.

Pioneering Tomorrow: Forged in China - Forging China's Semiconductor Industry

China's semiconductor industry is facing numerous challenges in its pursuit of technological independence. However, instead of relying on foreign technology, the country is shifting its focus towards developing its own semiconductor solutions.

One of the key drivers of China's semiconductor development is the increasing demand for high-end semiconductors in various industries such as AI, cloud, and server applications. As a result, the country is investing heavily in the development of next-generation semiconductors, including those based on the RISC-V architecture.

In addition to investing in R&D, China is also focusing on talent development and education to create a skilled workforce in the semiconductor industry. The country is investing in universities and research institutions to develop expertise in semiconductor design, manufacture, and open-source collaboration.

However, as China continues to develop its semiconductor capabilities, it must also address the risks associated with the widespread adoption of open-source platforms. While open-source technologies offer numerous benefits, they also introduce potential vulnerabilities that can compromise national security and intellectual property. Therefore, China must implement robust security measures to protect its interests and safeguard its technological advancements.