China’s push for the use of domestic semiconductors in the public sector is evident in the Huawei Qingyun L540 laptop. This laptop, which is gaining popularity among governments and state groups in China, is a symbol of the country’s localization campaign known as Xinchuang, or “IT application innovation.” The device features a self-designed processor and a Chinese-made operating system, removing foreign components and software as much as possible.
Chinese officials have long aimed to establish a domestic tech supply chain, particularly in essential components like semiconductors. Progress was slow until Washington imposed an embargo on high-tech goods, prompting Beijing to intensify its efforts. President Xi Jinping emphasized the need to increase research and development in semiconductors, machine tools, and foundational software to secure independent and controllable supply chains.
The directive to phase out American processors in favor of locally-made chips led to a significant shift in laptop purchases by central agencies in China. State buyers are now acquiring three-quarters of their devices with chips from Chinese companies like Huawei, Shanghai Zhaoxin, and Phytium. The Huawei Qingyun L540 has emerged as a popular choice among these agencies.
TechInsights conducted a teardown of the Huawei laptop, revealing key components such as the HiSilicon 9006C processor, SSD card, Wi-Fi/Bluetooth chip, audio amplifiers, and USB controller. These components showcase the localization efforts within the device, with many parts being sourced locally or from Chinese companies. The laptop runs on the Unity Operating System, a Chinese-made software based on Linux, providing users with familiar functionalities similar to Windows applications.
The campaign to promote domestic tech products has expanded beyond laptops to include other industries like automakers and major telecom equipment manufacturers. Automakers producing cars in joint ventures with Chinese state-owned firms have been directed to increase their use of domestic semiconductors. Similarly, telecom kit makers are encouraged to integrate local chips into their products to maintain sales.
China’s Ministry of Industry and Information Technology is driving the localization efforts, outlining plans for national auto chip standards to support indigenous innovation in auto chips. While challenges remain in designing-in Chinese chips, the potential cost savings could lead to their global adoption in various products. State-backed companies like China Telecom are already prioritizing servers equipped with domestic processors in their network infrastructure.
The shift towards using Chinese tech products is part of a broader strategy to achieve self-sufficiency and reduce dependence on foreign suppliers. As more industries embrace locally-made components and software, China aims to build a robust and secure tech ecosystem that aligns with its strategic goals. The Huawei Qingyun L540 laptop serves as a tangible example of this localization drive, showcasing the country’s progress in creating a self-reliant tech supply chain.
