Since the United States sanctioned ZTE in 2018 and listed Huawei in the real economy list of export controls in 2019, chip supply has become an important means for the United States to restrict the development of China's IC industry. Coupled with the impact of the coronavirus epidemic, some chip manufacturers around the world have stopped production, which has exacerbated the shortage of chip supply.It is an objective requirement for the development of China's chip industry to accelerate the localization substitution of supply chain. It is conducive to improve the stability of China's chip supply chain, reduce the production cost of China's chip supply enterprises, and promote the upgrading of the chip industry.The promotion of localizaiton substitution of the chip supply chain is faced with the constraints of technology, talents, and funds. In the links of chip design, manufacturing and packaging, there is a big gap between China and the international cutting-edge technology; there is a lack of professionals with both rich knowledge reserves and working experience in the production line; the development of the chip industry needs not only the financial support of the state, but also the support of the industry itself and social forces.The main suggestions to promote the localization of the chip supply chain: 1. Improve the research and development capabilities of core technologies in the chip field. 2. Strengthen the training of chip talents. 3. The government, industry and enterprise should cooperate to solve the financial problem in the operation of the enterprises.
