In April 2018, the US Commerce Department barred ZTE’s American suppliers from doing business with the company for seven years amid trade frictions between China and the US. Since then, the chip industry in China has seen unprecedented challenges and opportunities as the government attaches growing importance to technological innovation and made great efforts to develop homegrown chips. From 2018 to 2020, investment in semiconductors in China surpassed that of the previous 10 years combined. In 2020, China was home to nearly 60,000 chip enterprises. To compete for world semiconductor leadership, China is spending billions of dollars to develop chips every year, aiming to produce 70 percent of all the semiconductors it uses by 2025. Insiders projected that it will be hard for Chinese semi-conductors to lead the world in the short term, but the prospects for the next decade are rosy due to continuous investment and the large talent pool.