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Domestic chips enter the fast lane
The foundation of a modern information society lies in a tiny yet powerful component known as the "chip." Despite its small size, the chip is essential to driving today’s industries—from mobile phones and computers to home appliances, high-speed trains, electric vehicles, robots, and medical devices. Without it, these technologies would be impossible to operate. As Chen Chuanhong, director of the Ministry of Science and Technology's Major Special Office, stated, "A strong chip means a strong industry, and without a chip, there is no security."
Chip manufacturing is considered one of the most advanced micro-processing technologies globally, representing a critical national strategic resource. In 2008, China launched the National Science and Technology Major Project, focusing on the development of large-scale integrated circuit manufacturing equipment and technology. Over the past nine years, China has made significant progress in filling gaps in the industrial chain, improving manufacturing processes, and entering international competition.
Since the breakthrough in developing key equipment from scratch, China's integrated circuit industry has evolved dramatically—from being weak to becoming strong. Ye Tianchun, chief scientist at the Institute of Microelectronics, Chinese Academy of Sciences, explained that with each technological advancement, the size of chips reduces significantly. For example, 28-nanometer technology is about the size of a fingernail and can hold over a billion transistors, each as thin as a thousandth of a human hair. Even more advanced 14-nanometer technology is equivalent to having over 500,000 transistors on a single strand of hair.
This level of precision is akin to dancing on the tip of a needle, requiring top-tier equipment, materials, and craftsmanship. Due to its high-tech nature, integrated circuit manufacturing equipment is often ten to a hundred times more expensive than general-purpose machinery. For many years, China had limited access to high-end equipment, relying heavily on foreign imports. Western countries have imposed strict restrictions on the export of such equipment and related technologies, which has significantly hindered China’s development in this field.
With the rapid growth of China's economy and the acceleration of information technology, demand for integrated circuits has surged. Since 2006, integrated circuits have surpassed oil as China's largest import item, with annual imports exceeding $200 billion since 2013. This situation highlights the urgent need for independent innovation in the field of integrated circuits.
Since the implementation of the integrated circuit equipment project in 2008, over 200 enterprises and 20,000 researchers have participated in technical R&D across six major industrial clusters in Beijing, Shanghai, Jiangsu, Shenyang, Shenzhen, and Wuhan. Through their efforts, China's integrated circuit manufacturing technology has made remarkable progress, transitioning from scratch to strength.
"We now have our own key equipment, such as etching machines, which are widely used in mass production lines. Our integrated circuit technology has advanced through five generations, achieving mass production in 55/40/28 nm processes, and making breakthroughs in 20-14 nm technology," said Ye Tianchun. These self-developed tools are not only sold domestically but are also gaining traction in overseas markets.
In addition, China has developed hundreds of key materials, including polishing agents and sputtering targets, which are now in mass production. These achievements cover the entire integrated circuit industry chain and have reversed the previous reliance on imported process technologies.
Another highlight is the establishment of a new collaborative development model, where science and technology connect with the economy through market mechanisms. This model promotes coordination among enterprises, universities, research institutes, finance, and regional economies. The project has led to the creation of a new national system under the market economy, enabling more effective integration of resources and innovation.
Through joint efforts, companies like SMIC have supported numerous design units, helping them develop products at 65-45-28 nm nodes. In 2016, domestic design companies accounted for nearly half of SMIC's total revenue, showing the growing strength of China's chip industry.
The application of integrated circuit equipment has also boosted other sectors, such as LED lighting and photovoltaics. Domestic equipment has become the mainstream in these fields, reducing costs and enhancing competitiveness. According to North Huachuang Technology Group, domestic equipment has replaced imported products in LED and photovoltaic applications, bringing significant revenue and expanding into global markets.
As the world's largest semiconductor market and electronics manufacturing base, China aims to continue advancing its integrated circuit industry. By 2020, the focus will be on supporting traditional industrial upgrades and emerging sectors, promoting large-scale application of innovations, and strengthening the core competitiveness of Chinese enterprises in the global supply chain.