Gree Electric Now Able To Produce Its Own Chips

Chinese household appliances manufacturer Gree Electric (photo: x @RDSolenodonte)

JAKARTA Domestic appliances manufacturer from China, Gree Electric, has succeeded in developing its own chips after six years of hard work. This was reported by local Chinese media on Monday, December 16. This was also revealed by the Chairman of Gree, Dong Mingzhu, to the news portal Sina.com.

Dong said that the company, known as the producer of the room match, now has the ability to research, design, and manufacture chips, without funding support from the Chinese government. However, Dong did not explain the types of chips that Gree could currently produce.

In 2018, Gree founded a subsidiary that focuses on designing chips for air conditioning. At that time, the company announced its ambition to expand its smart home product line. Dong also mentioned that Gree spends 4 billion yuan (approximately IDR 7.8 trillion) per year to buy chips for its products.

In March this year, Dong announced that Gree is building a Silicon Carbide (SiC) chip factory, which is expected to start producing in June.

Gree isn't the only Chinese company moving towards chip independence. Smartphone manufacturers and other household appliances, such as Xiaomi and Midea, have also developed their own chips in recent years, in an effort to achieve supply chain independence and resilience.