As conflict in the Middle East intensifies and geopolitical risks rise, governments worldwide are paying closer attention to the resilience of defense supply chains and semiconductor self-sufficiency. Against this backdrop, and as China convenes its annual "Two Sessions," an article jointly authored by several Chinese academicians and published in the state-backed journal Science & Technology Review has drawn attention.
The article states that amid tightening external technology restrictions and growing strategic pressure, integrated circuits and encryption software used in China's satellite systems, military networks and various guidance and combat equipment have achieved "100% localization," enabling secure and controllable development of key strategic technologies.
The piece presents collective recommendations for the development of China's semiconductor industry during the country's 15th Five-Year Plan period from 2026 to 2030. The authors include academicians from the Chinese Academy of Engineering and the Chinese Academy of Sciences, along with industry experts, and focus on national strategic security and the overall development of China's semiconductor sector.
Satellite systems supported by domestic chip supply chain
The article states that in aerospace and satellite systems, components such as onboard processors, satellite navigation and positioning chips, dedicated ASICs for remote sensing data processing and radiation-hardened devices are already based on domestically designed and manufactured solutions.
According to the authors, China has built a complete domestic supply chain covering IP design, chip architecture, wafer fabrication and packaging and testing.
The article was jointly signed by semiconductor figures including academicians Wang Yangyuan, Chen Nanxiang, Wei Shaojun and Xiaolong Yan, as well as Zhao Jinrong, chairman of Naura Technology Group. The authors wrote that this development demonstrates that China's satellite communications and navigation systems can maintain stable operations even under highly uncertain international conditions.
Defense networks and cybersecurity components localized
The article further states that in defense and military network infrastructure, core processors, network switching chips and security modules have all been replaced with domestically developed alternatives.
In encryption technologies, the authors wrote that China has established an independent ecosystem covering hardware encryption modules, embedded security systems and underlying operating systems.
The article emphasized that cybersecurity forms the foundation of modern digital warfare, warning that reliance on foreign-controlled chips or encryption software could pose significant risks to national defense systems. It added that signal-processing chips, radar control ASICs, high-speed data links and anti-interference modules used in guidance and combat systems have also achieved full localization.
The authors said years of investment through major national programs and the military-industrial system have enabled China to establish independent capabilities in specialized manufacturing processes, extreme-environment design and dedicated encryption software development.
Focus turns to advanced processors and EDA tools
The article also acknowledged that China still faces a technological gap with global leaders in areas such as advanced processors, advanced logic manufacturing processes and high-end electronic design automation (EDA) tools, while also confronting external pressures.
The authors wrote that a key task during the 15th Five-Year Plan period will be to move beyond "secure and controllable" capabilities in strategic sectors and pursue higher performance and larger industrial scale, while strengthening domestic capabilities in foundational materials, manufacturing equipment and chip design tools.
Analysts said the publication of the article during the Two Sessions and at the beginning of the 2026–2030 plan period highlights its strategic significance.
As export controls and regional conflicts continue to affect the global semiconductor supply chain, China has elevated the autonomy of strategic chips and encryption software from an industrial objective to a central national security priority.
Article translated by Sherri Wang and edited by Joseph Chen
