Chinese authorities are preparing to release policy guidance aimed at boosting the use of open-source RISC-V chips nationwide, sources familiar with the matter said.

The guidance, which could be published as soon as later this month, is part of Beijing’s broader effort to reduce the country’s dependence on Western-owned technology.

Jointly drafted by eight government bodies—including the Cyberspace Administration of China, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the China National Intellectual Property Administration—the policy aims to encourage the adoption of RISC-V technology across various sectors. Sources indicated that while the guidance is expected soon, the final release date could change as discussions continue.

The announcement appears to have already had an impact on the domestic semiconductor market. Shares in several Chinese chip design firms, including VeriSilicon, ASR Microelectronics, Shanghai Anlogic Infotech, and 3Peak, saw significant gains during trading. The CSI All-Share Semiconductor Products and Equipment Index reversed early losses by as much as 2.5%.

RISC-V, an open-source chip architecture, is used to design a range of less-sophisticated chips—from those found in smartphones to central processing units for artificial intelligence servers. The technology competes with more widely used proprietary architectures such as x86, dominated by firms like Intel and Advanced Micro Devices, and Arm, developed by Arm Holdings.

In recent years, state entities and research institutes in China have increasingly embraced RISC-V, citing its lower cost and perceived geopolitical neutrality. China’s largest for-profit RISC-V intellectual property providers include Alibaba’s XuanTie and startup Nuclei System Technology, which supply commercial RISC-V processors to chip designers.

At a recent industry event organized by XuanTie, executives noted that the growing popularity of AI models from companies like DeepSeek could further drive the adoption of RISC-V chips. “Even if a RISC-V solution priced at 10 million yuan might only reach about 30% of the level of NVIDIA or Huawei, buying three sets means the overall cost might still be lower,” said Sun Haitao, a manager at China Mobile System Integration, describing the development as a potential breakthrough.

Officials from the involved ministries did not immediately respond to requests for comment. The forthcoming policy is seen as part of China’s ongoing strategy to accelerate the development of its semiconductor industry and lessen reliance on foreign technology amid increasing global technological competition.

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