Amidst the ongoing geopolitical tensions, the localization process of China's semiconductor industry is gathering momentum. Ye Weigang, the founding partner of Datai Capital, emphasized at an internal gathering that China has achieved remarkable advancements in sectors like AI chips and EDA (Electronic Design Automation) tools. Domestic AI chip producers, exemplified by Huawei/HiSilicon and Cambricon, have witnessed rapid growth in the realm of high-performance AI accelerators. Additionally, the market share of domestically produced EDA tools has surged to around 20%. Nevertheless, China continues to grapple with formidable obstacles in pivotal areas such as cutting-edge manufacturing and semiconductor equipment. There remain substantial technological gaps in crucial domains, including advanced process technologies at 7-nanometer and below, as well as photolithography equipment. Capacity bottlenecks are anticipated to persist in the near term.