China boosts AI, EVs, and RISC-V chips amid ongoing semiconductor challenges and U.S. restrictions.

China’s semiconductor sector is prioritizing AI, electric vehicles, and the open-source RISC-V architecture to drive growth, despite ongoing challenges in advanced chip manufacturing. While domestic production rose 10.2% in the first 10 months of 2025, imports remained high, reflecting continued reliance on foreign supplies. The country’s 189 wafer lines lag behind global leaders in capacity. In response to U.S. restrictions, China is advancing RISC-V for its flexibility and energy efficiency, with experts predicting its widespread adoption in data centers and smart devices within three to five years. U.S. firms still dominate China’s electronic design automation market, holding 82% share, though they are adapting to the automotive industry’s increasing software demands.