China has begun applying a revolutionary AI chip built on Hybrid Stochastic Number computing. This innovation aims to bypass technological limits imposed by the traditional binary logic systems and avoid reliance on US-restricted components. Developed by researchers at Beihang University, the chip combines efficiency, resilience and computational accuracy, marking a milestone in semiconductor innovation.
Conventional chips face 2 critical challenges known as the power wall and the architecture wall.
Binary systems are precise but require significant energy to process data. As digital systems scale, power usage becomes unsustainable, limiting growth and efficiency in high-demand environments such as AI or aerospace.
Most alternative chips struggle to integrate with existing CMOS infrastructure. CMOS remains the industry standard, but innovation in this space is restricted by design compatibility and manufacturing challenges. Hybrid computing offers a potential bypass.
Hybrid stochastic computing blends 2 key methods—binary and probabilistic logic.
Highly accurate but power-intensive, this is the foundation of conventional computing.
Represents data as frequencies of voltage pulses. It consumes less energy but is less precise and introduces delay.
According to a report by the South China Morning Post. Li Hongge’s team developed a system that processes information using:
- Binary numbers for accuracy
- Stochastic numbers for energy efficiency
- A hybrid layer to balance both
The result is a chip that performs reliably under variable conditions, consumes less power and is more fault-tolerant.
Read More: How Nvidia is Pivoting in Response to the US Ban on AI Chip Sales to China!
China has begun integrating this chip in multiple sectors.
Touch Displays: Improves signal clarity, filters noise, and enhances sensitivity to weak touch input.
Medical and Industrial Displays: Enables low-energy, high-speed data processing for better accuracy in readings.
Flight Control Systems: Ensures stable navigation and fault tolerance—essential in defence and aerospace environments.
All these benefit from the chip’s in-memory computing architecture, significantly reducing energy spent on moving data between memory and processors.
Instead of relying on advanced nodes like 5nm or 3nm technology, the team used mature 110nm and 28nm processes by SMIC.
This strategic move enables China to:
- Avoid export restrictions
- Utilise local semiconductor capabilities
- Focus on architectural rather than brute-force hardware innovation
The development showcases how performance can be enhanced using smarter designs rather than smaller transistors.
The research team is working on a custom instruction set architecture and new microarchitecture.
Future applications may include:
- AI model acceleration
- Image and speech recognition
- Enhanced neural networks
Such advancements could offer a domestic platform for AI growth and machine learning, independent of foreign technologies.
As global competition intensifies, China’s shift from traditional transistor-based computing to novel logic systems signals a new direction for chip development.
China’s new hybrid AI chip, built on Hybrid Stochastic Number computing, represents a major leap in chip design. By sidestepping US restrictions and overcoming long-standing technological barriers, it introduces a new paradigm for energy-efficient, fault-tolerant, high-performance computing. This development may alter the foundation of global semiconductor design and reshape the computing landscape.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 10, 2025, 1:39 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates