【Domestic News】Semiconductor Industry Proposals at China’s 2026 Two Sessions

      During the 2026 National Two Sessions, the semiconductor industry—regarded as a core sector for strengthening China's technological self-reliance and stimulating new productive forces—became a major topic of discussion among deputies and members. Key issues included technological self-sufficiency, supply chain resilience, financing, AI-chip integration, materials development, regional industrial clusters, and intellectual property protection.

      As the first year of China’s 15th Five-Year Plan, this year’s Two Sessions carry particularly strong expectations for the future direction of the industry.

      The following summarizes major semiconductor-related proposals raised during the 2026 Two Sessions (as of March 5).

 

Chip Deployment and Computing Power Implementation

      Guo Yufeng, Vice President of Phytium Technology and a member of the National Committee of the CPPCC, proposed promoting the transition of domestic chips from “usable” to “highly usable,” and translating the extraordinary strategies of the 15th Five-Year Plan into concrete and measurable actions.

      His core recommendations include:
First, advancing systematic technological breakthroughs, shifting from isolated point innovations to coordinated development across the entire industrial chain by concentrating top resources and talent.
Second, accelerating scenario-based deployment, enabling domestic chips to enter critical application scenarios such as 5G base stations and airport departure systems.
Third, building an AI + industry closed-loop ecosystem, allowing AI technologies to genuinely reduce costs and improve efficiency within the chip industry.

 

      Zhou Hongyi, founder of Qihoo 360 and a member of the National Committee of the CPPCC, proposed vigorously developing high-performance, low-cost dedicated inference chips.

      His key recommendations include:
      First, optimizing the computing power structure by shifting the focus from “training-centric” to “inference-centric.” He suggests building low-latency, high-density inference computing clusters to support large-scale deployment of AI agents. When executing tasks, AI agents may consume hundreds or even thousands of times more inference computing power than typical chatbot scenarios, indicating a current structural gap in inference computing capacity.

      Second, accelerating breakthroughs in chip development by promoting dedicated inference chips. These chips require lower interconnection complexity and offer controllable costs, and Chinese companies already possess mass-production capabilities, which could significantly lower the threshold for AI deployment and support the widespread adoption of edge and end-device intelligent applications.

      Third, strengthening national-level coordination by introducing policies for the deployment of inference computing infrastructure and establishing a “national coordination + regional refinement” scheduling system, thereby improving the utilization efficiency of computing resources while advancing the self-reliance and controllability of the inference computing industry chain.

 

“AI + Chips” Integration

      Zhang Qi, a member of the National Committee of the CPPCC, vice chair of the Shanghai Municipal Committee of the China National Democratic Construction Association, and general manager of Shanghai United Investment Co., Ltd., proposed accelerating the exploration of an AI industry development path with Chinese characteristics. He suggested building a corpus hub platform, promoting software–hardware coordination, establishing a domestic chip application ecosystem, and advancing the deep integration of AI and the semiconductor industry.

      His proposals focus on three aspects:

      First, building a corpus hub platform.
He recommends accelerating the development of a high-quality corpus innovation system and supporting cities such as Shanghai in establishing national strategic-level corpus platforms. Key technologies such as data synthesis and multimodal integration should be tackled to fill gaps in scarce frontier datasets and improve overall AI readiness of data across society.

      Second, promoting coordinated development of software and hardware.
He suggests accelerating the development of domestic heterogeneous intelligent computing systems, establishing independent AI computing software–hardware adaptation centers, and advancing testing and cluster validation of domestic AI chips. At the same time, research should track frontier model technologies and explore model development paths under limited hardware conditions.

      Third, promoting research through application to build a domestic chip ecosystem.
Leveraging China’s new national system for key technological breakthroughs, he proposes advancing the integrated design of algorithms, architectures, and hardware, promoting the coordinated development of foundation models and vertical industry models, and supporting leading enterprises in building MaaS (Model-as-a-Service) platforms. This would help cultivate industry solution providers with global influence and further deepen the integration of AI and the chip industry.

 

Photonic Chips and Compound Semiconductors

      Yan Dapeng, a deputy to the National People’s Congress and vice chairman and chief engineer of Wuhan Raycus Fiber Laser Technologies Co., Ltd., proposed accelerating the development of a world-class optoelectronic information industry cluster.

      His key recommendations include two aspects:

      First, strengthening core technology breakthroughs.
He suggests establishing national and provincial special research programs, increasing financial support and investment in fundamental research, and adopting mechanisms such as “open competition for project leadership” and the “horse-race system.” Leading enterprises acting as “chain leaders” should organize innovation consortiums to drive breakthroughs in frontier technologies such as 1.6T silicon photonic modules and compound semiconductors, thereby improving the independent controllability of key products.

      Second, deepening industrial chain collaboration.
He proposes establishing provincial industrial chain funds to support pilot-scale verification and capacity expansion for SMEs, refining industrial chain mapping, and promoting the integration of the “six chains”. The goal is to strengthen leading enterprises, support industrial chain consolidation, optimize spatial industrial layout, and achieve complementary regional coordination across the sector.

Integrated Circuits and Semiconductor Chips

      Hao Yue, a deputy to the National People’s Congress and an academician of the Chinese Academy of Sciences, focused on the foundational technologies and strategic strengths of the integrated circuit and semiconductor chip sectors.

      He noted that China has already developed strong international competitiveness in several emerging fields, including third-generation semiconductors (such as gallium nitride and silicon carbide), fourth-generation semiconductors (such as Gallium Oxide and diamond), as well as photonic chips, and could potentially achieve global leadership in certain niche tracks.

      Hao Yue particularly emphasized that China controls more than 95% of the world’s gallium resources, giving the country a unique industrial advantage that other nations do not possess.

      His key recommendations include leveraging this resource endowment to promote the large-scale and globally competitive development of compound semiconductor industries, increasing support from national industrial investment funds for emerging fields such as fourth-generation semiconductors, low-dimensional materials, and new memory technologies, and optimizing training mechanisms in microelectronics and related disciplines to cultivate compound integrated circuit talents with strong practical skills and innovative capabilities.

 

 

Financing and Capital Support

      Li Dongsheng, founder of TCL and a deputy to the National People’s Congress, pointed out that China’s integrated circuit industry currently faces a dual bottleneck of restricted technological equipment and insufficient capital investment. He suggested opening a “green channel” in capital markets for industries such as integrated circuits that are characterized by heavy assets, long development cycles, and high technological barriers.

      Li Dongsheng proposed establishing special financing channels and formulating financing rules tailored to high-tech industries such as integrated circuits and semiconductor displays, rather than applying the same standards used for ordinary industries. He also recommended optimizing capital market refinancing mechanisms by shortening refinancing cycles, simplifying procedures, and improving the efficiency of corporate access to funds in order to relieve financial pressure. At the same time, differentiated financing policies should be introduced to encourage private enterprises to enter the integrated circuit sector, helping to break through the investment bottlenecks faced by private capital.

      In addition, he emphasized the need to standardize the support mechanisms of local government industrial funds. Local governments can support strategically oriented frontier industries through market-based instruments such as industrial funds, but this support should strictly follow national industrial policy directions, maintain limited liability risk exposure, carefully select projects, and cooperate with partners capable of providing risk safeguards. These measures aim to ensure the safe and efficient use of funds, while also promoting the strategic withdrawal of local state-owned capital from general competitive sectors so that the market can play a decisive role in resource allocation.

 

Innovation and Development of Private Technology Enterprises

      Yao Lijun, founder and chief technology officer of Ningbo Jiangfeng Electronic Materials and a member of the National Committee of the CPPCC, focused on the innovation and development of private enterprises. Emphasizing the important role private companies play in technological innovation and semiconductor materials, he put forward a series of proposals aimed at stimulating the vitality of private technology enterprises and strengthening China’s scientific and technological self-reliance.

      Yao suggested supporting private enterprises to deeply participate in national innovation platforms, breaking institutional barriers and leveraging the flexibility and efficiency of private-sector mechanisms to contribute to breakthroughs in key core technologies. He also proposed improving talent cultivation and incentive systems, including launching dedicated training programs for R&D personnel in private enterprises and supporting outstanding private-sector innovators in participating in national honor and award evaluations, thereby removing identity-based barriers in talent assessment and addressing challenges in attracting, cultivating, and retaining talent.

      In addition, he emphasized the need to strengthen policy and financial support. This includes encouraging private enterprises to build new types of scientific and technological innovation platforms, establishing venture capital funds centered around leading companies, and creating dedicated technology innovation programs for private enterprises within ultra-long-term special government bonds. Such measures would provide stable financial backing for private technology companies to participate in breakthroughs in hard-tech fields such as semiconductors.

 

Regional Clusters and National Layout

      Zhang Guohu, a deputy to the National People’s Congress and general manager of GRINM Semiconductor Materials, proposed strengthening regional industrial clusters by incorporating the Jinan–Dezhou integrated circuit cluster into China’s national productivity layout. His proposal aims to upgrade the cluster, enhance northern regional coordination, and address upstream material “bottleneck” challenges in the semiconductor supply chain.

      He suggested promoting the upgrading of the cluster by integrating the Jinan–Dezhou IC cluster into the national strategic framework, forming synergies with cities such as Beijing—which has strengths in chip design—and Tianjin, known for manufacturing equipment. As Shandong’s first provincial-level advanced manufacturing cluster for integrated circuits, Jinan has advantages in chip design and high-end equipment, while Dezhou focuses on upstream materials and components such as silicon wafers and sputtering targets. The cluster already demonstrates a clear division of labor and smooth factor mobility.

      Zhang also emphasized the importance of strengthening northern regional coordination, proposing deeper collaboration with the Beijing–Tianjin–Hebei industrial ecosystem to reinforce the foundation of the northern integrated circuit industry. Through cross-regional supply chain collaboration, this approach aims to resolve upstream material bottlenecks and elevate the overall development level of the semiconductor industry.

 

Semiconductor Materials and Resource Security

      Huang Shuibo, a deputy to the National People’s Congress and R&D director of Lingwei Technology, focused his proposals on semiconductor materials and the security of key strategic resources. Drawing on the advantage of Loudi—the world’s largest production base for antimony products—he put forward several targeted recommendations. He noted that Antimony is widely used in national defense, new energy batteries, and semiconductors, making it a critical resource for semiconductor industry development. Incorporating the antimony industry into the national strategic planning framework would therefore be of great significance for safeguarding resource security, consolidating global leadership in the antimony industry, and promoting the green transformation of resource-based cities.

      At the same time, Huang emphasized that achieving self-reliance in upstream semiconductor materials is essential to ensuring the security of industrial and supply chains. He pointed out that China still relies on overseas suppliers in several upstream areas, including third-generation semiconductor materials, silicon wafers, sputtering targets, and key components, which constrains the independent development of the semiconductor industry. To address this, he recommended increasing R&D investment in these core upstream materials, accelerating technological breakthroughs, and enhancing domestic capabilities to reduce dependence on foreign technologies. He also proposed strengthening overall planning for the semiconductor materials sector, optimizing industrial布局, promoting coordinated development across the upstream and downstream segments of the supply chain, and improving the materials supply system to support the high-quality development of the semiconductor industry.

 

Patents and Industrial Environment

      Jia Yu, a deputy to the National People’s Congress and president of the Shanghai High People's Court, proposed measures aimed at improving the innovation environment for the semiconductor industry, focusing in particular on the issue of malicious patent litigation. His proposal seeks to regulate abusive patent competition practices, safeguard the development of new quality productive forces in the semiconductor sector, uphold judicial credibility, and create a fair and orderly rule-of-law environment that supports innovation in key core industries such as semiconductors.

      His recommendations include establishing a cross-departmental coordinated enforcement mechanism to promote regular information sharing between patent administrative authorities and judicial bodies, strengthening the early identification and joint punishment of malicious reporting and litigation. He also suggests exploring the creation of a patent credit system by building credit records covering patent applicants, patent agencies, and related practitioners, and placing entities involved in malicious litigation on a warning list for enhanced supervision. In addition, he proposes establishing a patent rights data inquiry database that integrates resources such as patent examination records, invalidation decisions, and infringement rulings, breaking data barriers and enabling real-time sharing to improve the accuracy of patent examination and judicial decisions. Finally, he recommends encouraging key industry associations to formulate patent risk response guidelines for critical business stages and to organize expert evaluations and legal support to help enterprises prevent and respond to malicious patent litigation risks.

 

Talent Development and Industry–Academia–Research Collaboration

      In response to challenges such as the shortage of semiconductor talent and insufficient integration among industry, academia, and research institutions, representatives including Hao Yue, Guo Yufeng, and Yao Lijun put forward a series of proposals focusing on talent cultivation and collaborative innovation.

Overall, in terms of talent development, they recommend implementing a “dual-mentor” system jointly led by universities and enterprises, along with project-based training models. This approach would leverage universities’ strengths in theoretical education and enterprises’ advantages in practical resources, enabling students to enhance their professional skills and hands-on capabilities through participation in real-world projects. Particular emphasis is placed on cultivating interdisciplinary talent with expertise in both chips and AI to meet the needs of integrated industrial development.

      Regarding industry–academia–research collaboration, the proposals call for accelerating the establishment of specialized pilot-scale platforms to bridge the critical gap between laboratory research and industrial production lines. By facilitating the transition of technological achievements from laboratories to the market, such platforms can promote the practical application of research outcomes and elevate the overall technological level of the industry. As a key link between R&D and manufacturing, pilot-scale platforms can effectively reduce the risks associated with technology transfer and improve the efficiency of commercialization, enabling enterprises to rapidly convert advanced technologies into productive capacity.

      At the same time, the proposals suggest optimizing the talent evaluation system by moving beyond traditional criteria such as “papers, titles, academic degrees, and awards.” Instead, they advocate using industrial contributions, technological breakthroughs, and the successful commercialization of research results as core evaluation indicators. This shift aims to stimulate researchers’ innovation motivation, encourage greater participation in tackling core semiconductor technologies, and cultivate a cohort of high-level professionals who understand both technology and industry and are capable of solving real-world problems—thereby providing sustained momentum for the high-quality development of China’s semiconductor industry.

 

Conclusion

      This year marks the opening year of China’s 15th Five-Year Plan. The Two Sessions have outlined a clear direction for the development of the country’s semiconductor industry: strengthening technological self-reliance, accelerating the cultivation of new quality productive forces, enhancing the autonomy and security of the industrial chain, and deepening the integration of AI and chips. From breakthroughs in core technologies and computing infrastructure construction to advances in compound semiconductors, key materials, industrial clusters, capital support, legal safeguards, and talent development, a series of pragmatic proposals has provided strong momentum for the industry’s high-quality growth.