In the current era of rapid technological advancements, chips have emerged as the linchpin of numerous industries. Gree, a pioneer in the home appliance industry and a dominant force in the air conditioner market, made an unexpected and audacious move by venturing into the chip sector. This announcement instantly stirred significant upheaval in the industry, akin to a seismic shockwave.

Many perceive the chip industry as highly technology- and capital-intensive, with protracted R&D cycles and substantial risks of failure. For Gree, a traditional home appliance company without prior experience in chip manufacturing, investing heavily in this sector is undeniably a significant gamble. However, Dong Mingzhu firmly declared, "Even if we invest 50 billion yuan, Gree will succeed in chip research. Resolving the bottleneck is paramount, transcending mere profit!" These words underscore Dong Mingzhu's resolve and bravery, igniting anticipation and curiosity about Gree's chip development journey.

The Chip Conundrum and Gree's Determination to Break Through

On the global stage of technological competition, the significance of chips is self-evident. They serve as the "heart" of electronic products, the core of numerous high-tech innovations. From our daily smartphones and computers to automation equipment in industrial production, and even in fields like automobiles and aerospace, chips are ubiquitous, and their performance directly influences the functionality and competitiveness of products.

For a considerable period, China has lagged behind in chip technology, heavily reliant on imported chips. Relevant data reveals that China's annual chip imports amount to hundreds of billions of dollars, with some years witnessing chip import values surpassing the combined import values of crude oil and iron ore. This situation not only places China in a vulnerable position in the international chip market, exposed to risks such as price fluctuations and supply instability, but also severely hampers the independent development of numerous industries in China. Should the international landscape shift and chip supplies be disrupted, many enterprises would face operational difficulties, and the country's economic and industrial security would be gravely threatened.

Take the 2018 ZTE incident as an illustration. A US ban prohibited American companies from selling components to ZTE, instantly plunging ZTE into a dire crisis. As a prominent enterprise in the global communications sector, ZTE's core business was severely impacted by the chip supply disruption, leading to production stagnation, business obstacles, and a substantial decline in the company's market value. This incident served as a wake-up call for Chinese enterprises, making us keenly aware of the colossal harm caused by relying on others for core technologies. If crucial chips cannot be independently controlled, enterprises are akin to building on sand, with an unstable foundation prone to collapse at any moment.

Gree's Arduous Journey and Breakthroughs in Chip Manufacturing

Upon deciding to enter the chip sector, Gree swiftly assembled a professional chip R&D team. This team comprised top talents from across the globe, some with extensive experience in chip design, others with accomplishments in semiconductor material research, and still others with unique insights into chip manufacturing processes. Driven by their passion and dreams for chip R&D, these talents coalesced for a common objective – to enable Gree to possess independently developed chips.

Chip R&D is a complex and protracted process, with technical challenges akin to towering mountains blocking Gree's path to chip manufacturing. Chip design necessitates a holistic consideration of various factors such as performance, power consumption, and area, and even minor alterations in any of these factors can significantly impact the overall performance of the chip. In terms of manufacturing processes, Gree confronts challenges related to equipment precision and material quality. To overcome these hurdles, Gree's R&D team worked tirelessly in the laboratory, referencing a vast array of literature and drawing upon advanced technical expertise from both domestic and foreign sources to continuously experiment and innovate.

During the R&D process, Gree was acutely aware that relying solely on its own strength was insufficient, so it actively collaborated with numerous semiconductor enterprises both domestically and internationally. They partnered with domestic research institutions to jointly conduct foundational research on chip technology, delving deeply into chip design principles and manufacturing processes. By collaborating with advanced foreign enterprises, they introduced cutting-edge technology and equipment and learned from their management expertise and R&D models. Through these collaborations, Gree continuously absorbed and integrated the strengths of all parties, accelerating the chip R&D process.

After numerous days and nights of arduous work and perseverance, Gree finally achieved a significant breakthrough in chip R&D. In May 2023, Gree successfully launched its first independently developed chip, G1. This is an intelligent control chip for full DC inverter air conditioners, marking a solid foundational step for Gree in the realm of chip manufacturing.

Gree's Achievements and Growth in Chip Development

Since Gree successfully launched its first independently developed chip, G1, its progression in the chip sector has been akin to a galloping horse, surging ahead.

With the continuous advancement of technology and the sustained growth of market demand, Gree's chip shipments have been increasing annually. In 2024, Gree's total chip shipments are anticipated to exceed 50 million, with a year-on-year increase of 40%, among which 32-bit MCU chips account for over 60% of the share. These figures not only illustrate the popularity of Gree's chips in the market but also attest to Gree's prowess in chip R&D and production.

In terms of technological innovation, Gree has consistently maintained high investment and focus. They continuously refine the chip's design architecture and manufacturing processes to enhance its performance and quality. Gree's independently developed chips have attained industrial-grade quality, with its general-purpose industrial-grade 32-bit MCU series boasting high performance, high reliability, low power consumption, and low cost. The smart home series chips also integrate high-performance AI computing power and embedded MCUs, enabling intelligent control for various functions.

Moreover, Gree has obtained multiple patents, including "A low-power chip and its preparation method" and "A standby low-power chip and methods for entering and exiting standby low-power mode," showcasing its robust strength in chip technological innovation. The acquisition of these patented technologies not only provides technical support for the development of Gree's chips but also contributes to the technological advancement of China's chip industry.

In terms of patent layout, Gree has also achieved remarkable outcomes. In September 2022, Gree Electric ranked among the top ten global CPU chip industry patent applicants, with up to 291 algorithm patents derived from basic mathematical reasoning. This achievement fully embodies Gree's profound accumulation and innovation capabilities in chip technology R&D and has been widely recognized by the international market.

Future Prospects: Gree's New Journey in Chips

Looking ahead, the development prospects for Gree's chips are promising, with immense application potential in smart homes, new energy, and other domains.

In the smart home sector, with the improvement of people's living standards and continuous technological advancements, the smart home market is exhibiting a booming trend. Leveraging its high performance, low power consumption, and intelligence, Gree's chips will become the core driving force behind smart home devices. Envision a future where in smart home systems, Gree's chips facilitate interconnection and intelligent control among various devices.

The development of Gree's chips has a profound impact on both Gree itself and China's manufacturing industry. For Gree, the success of its chip business will further solidify its industry-leading position and enhance its core competitiveness. By mastering the core technology of chips, Gree can achieve independent control over its products, reduce production costs, improve product performance and quality, and thereby secure a more favorable position in market competition. Simultaneously, the development of the chip business will also provide robust support for Gree's diversification strategy, aiding its expansion into fields such as smart homes, smart equipment, and new energy to achieve sustainable development.

For China's manufacturing industry, Gree's success in chip manufacturing represents a significant milestone. It not only sets an example for Chinese enterprises in independent R&D in the chip sector, inspiring more enterprises to increase investment in semiconductor R&D and fostering the overall development of China's chip industry but also propels the transformation and upgrading of China's manufacturing industry, elevating its position in the global industrial chain.

In today's increasingly fierce global technological competition, independent control over core technologies is a crucial guarantee for national economic and industrial security. The development of Gree's chips demonstrates China's determination and capability to break through bottlenecks in core technology fields, instilling confidence in the future of China's manufacturing industry.

It is believed that with the concerted efforts of enterprises like Gree, China's manufacturing industry will undoubtedly achieve a magnificent transformation from "Made in China" to "Created in China," shining more brightly on the global technological stage.