China imported 549.2 billion chips in 2024, while domestic chip production reached 451.4 billion units. On the surface imports exceed domestic output, which suggests an imbalance between supply and demand. In reality this is caused by the complex structure of domestic demand: strong demand for high-end chips where domestic capacity is insufficient, while competition in low- and mid-range products is fierce. Solving this requires optimising the domestic chip industry structure, lifting high-end capacity, guiding market demand in a reasonable way and promoting the application of domestic chips.