China Targets $4.5 Trillion Electronics Revenue in New 'Full-Chain' Chip Strategy

Chinese authorities have designated "full-chain breakthroughs in integrated circuits" as the top priority of the electronic information manufacturing plan for the 15th Five-Year Plan (2026-30). The strategy marks a pivot toward a systemic reconstruction of the semiconductor sector to secure the hardware foundations for AI, telecommunications, and aerospace.

Under the new mandate, China aims for revenue from enterprises above designated size in the electronic information manufacturing sector to exceed 30 trillion yuan ($4.5 trillion) by 2030. To achieve this, the government has set an R&D intensity target of 3.5 percent for the sector. This push follows a period of significant growth; in 2025, China's integrated-circuit sales reached 1.7331 trillion yuan, with exports surpassing $200 billion for the first time.

A Systemic Shift in Strategy

The "full-chain" approach moves away from chasing individual technical milestones to addressing six core segments simultaneously: design, manufacturing, packaging and testing, equipment, materials, and design tools, including Electronic Design Automation (EDA). Specific technical targets include the development of high-density memory, high-performance processors, advanced EDA tools, and ultra-wide-bandgap semiconductors utilizing diamond and gallium oxide.

Zhang Xiaorong, director of the Beijing-based Cutting-Edge Technology Research Institute, noted that the approach no longer centers on chasing single technologies. Instead, the five-year goal is to create a resilient, self-reliant industrial system that cannot be easily crippled and possesses necessary backups.

Mitigating Foreign Dependency

This strategic shift arrives as the U.S. continues to tighten export controls. In May, the U.S. Bureau of Industry and Security issued guidance requiring licenses for advanced AI chips shipped to entities with parent companies in China, Russia, or other Group D:5 nations. By pursuing a comprehensive chain rather than piecemeal fixes, Beijing intends to eliminate "choke points"—such as lithography and EDA tools—that leave its technology stack vulnerable to foreign sanctions.

Ao Li, deputy dean of the China Academy of Information and Communications Technology, stated that competition has shifted from scale to systemic capability, describing the electronic information manufacturing industry as the hardware base of "new industrialization."

The Path to 2030

If successful, the plan could transform China's semiconductor landscape from one of dependency to one of export leadership. By the end of 2030, China expects to solve critical choke points in the field, potentially turning these previously vulnerable areas into primary drivers of emerging exports.

Observers will now watch whether the 3.5 percent R&D intensity target translates into the domestic production of the high-performance processors and advanced tools required to sustain China's AI ambitions without Western imports.