Overview of China's Domestic CPU Development and Leading Companies

CPU, as the computational and control core of computer devices, handles instruction fetch, decode, and execution; due to high R&D barriers and ecosystem complexity it is often called the "Everest" of the integrated circuit industry.

Globally, Intel and AMD dominate the general‑purpose CPU market, while China’s domestic CPU sector is in a critical catch‑up phase, represented by firms such as Phytium, Kunpeng, Haiguang, Loongson, Zhaoxin, and Shenwei.

1. Development History

The evolution of Chinese domestic CPUs can be divided into three stages:

Start (1950‑1970s): Semiconductor technology was listed as a national priority in 1956, leading to the establishment of research institutes and factories that produced germanium and silicon transistors, integrated circuits, and early computers such as the 109‑Y and 156 series.

Turning Point (1980‑1990s): The formation of the Chinese Academy of Sciences Microelectronics Center in 1985 marked a market‑oriented but still dependent era.

Acceleration (2000s‑present): Policy initiatives like the 15th Five‑Year Plan, the Taishan Project, and the 863 Program spurred a wave of domestic CPU projects. Notable milestones include the 2002 Loongson 1 chip tape‑out, the 2006 “Nuclear‑High‑Base” project, and the establishment of the National IC Fund.

After decades of effort, the domestic CPU industry now boasts a range of leaders, which can be grouped by instruction‑set architecture:

CISC (x86): Haiguang and Zhaoxin.

RISC: ARM‑based Kunpeng and Phytium, MIPS‑based Loongson, and Alpha‑based Shenwei.

2. Phytium – Ecosystem Leader

Founded in 1999 by the National University of Defense Technology, Phytium (FT) is the most state‑owned domestic CPU company. After experimenting with X86, EPIC, SPARC, and ARM, Phytium settled on ARM, releasing a full product line covering desktop, server, and embedded markets.

Key products include the FT‑2000+/64 server CPU (16 nm, 2.0‑2.3 GHz, 64 cores) launched in 2017, and the FT‑2000/4 desktop CPU (16 nm, 2.6‑3.0 GHz, 4 cores) released in 2019, whose SPEC 2006 scores approach those of Intel Core i5. Phytium maintains an open ecosystem with over 1,000 hardware/software partners, supports Android applications, and implements a comprehensive security processor architecture covering cryptographic acceleration, trusted boot, secure storage, and hardware‑level attack resistance.

3. Kunpeng – Rapidly Rising Leader

Kunpeng is Huawei’s flagship chip family, part of the “Kunpeng + Ascend” dual‑compute engine. Based on ARM v8, it powers both servers (Hi1610/12/16, flagship Kunpeng 920/920s) and PCs. The Kunpeng 920, built on a 7 nm process, offers up to 64 cores, 2.6 GHz frequency, 8‑channel DDR4, PCIe 4.0, and delivers SPECint scores 25 % above the industry benchmark with 30 % better energy efficiency.

Huawei promotes an open hardware and open‑source software model, fostering an ecosystem that includes more than 12 OEMs and at least 15 Kunpeng innovation centers. However, its vertically integrated business model limits third‑party chip sales, narrowing profit margins for downstream integrators.

4. Haiguang – Performance‑Driven Practitioner

Haiguang Information Technology, a subsidiary of Sugon, partnered with AMD in 2016 to acquire Zen 1 IP, producing the Dhyana 8‑core desktop CPU and Dhyana Plus 32‑core server CPU. After achieving profitability in 2019 (revenues ¥3.90 bn, net profit ¥0.60 bn), Haiguang secured large‑scale orders such as China Telecom’s 2020 server procurement, which specified Kunpeng 920 or Haiguang Dhyana CPUs.

Reliance on AMD’s older Zen 1 architecture and limited mobile ecosystem support remain challenges.

5. Loongson – Fully Autonomous Pioneer

Loongson, originating from the Chinese Academy of Sciences in 2001, has produced a series of CPUs (Loongson 1, 2B, 2E, 2A, 3A, etc.) based on the MIPS architecture and later the proprietary LoongISA instruction set. Three product lines exist: the high‑performance 3‑series (desktop/server), the mid‑range 2‑series (industrial/terminal), and the low‑power 1‑series (specialized applications such as satellites and IoT).

Generations have progressed from single‑core 2‑3 SPEC points (1st gen) to four‑core 10‑11 points (2nd gen) and four‑core 20‑30 points (3rd gen). Future roadmaps target 12 nm processes for the 3A5000 desktop and 3C5000 server CPUs.

Loongson’s ecosystem remains limited, with few OEMs and cloud providers supporting its chips.

6. Zhaoxin – Joint‑Ventured X86 Explorer

Zhaoxin, a joint venture between Shanghai’s state‑owned investment arm and Taiwan’s VIA, develops X86 CPUs. The 16 nm KX‑6000 (desktop) and KH‑30000 (server) launched in 2019 reach 3.0 GHz, support DDR4‑3200, and achieve SPECint 2006 scores of 170, comparable to a 7th‑gen Intel i5.

Zhaoxin continues to pursue higher‑core, dual‑socket designs (KH‑40000) and 7 nm‑class SoC development (KX‑7000). However, dependence on VIA’s X86 license, which expired in 2018, raises concerns about future architectural upgrades and potential security risks.

7. Shenwei – Super‑Computing Specialist

Shenwei, developed by the Shanghai High‑Performance Integrated Circuit Center, is based on DEC’s Alpha architecture with extensive ISA extensions. Since 2006, Shenwei has released a series of CPUs ranging from single‑core (900 MHz) to 32‑core (targeting cloud and big‑data workloads), with performance projected at 60‑80 % of contemporary Intel server chips.

The Shenwei Information Security Industry Alliance now includes over 50 members, and the platform has been adapted for the UnionTech UOS operating system.

Conclusion

Driven by international pressures, policy support, and market demand, a wave of Chinese CPU manufacturers has made significant breakthroughs in process technology, performance, and ecosystem construction, contributing to the autonomy, security, and trustworthiness of the nation’s computing foundation.