Beijing Unveils ¥3.5 Trillion IoT Ambition for 2028
China's government has launched a new industrial policy aimed at establishing global leadership in the Internet of Things (IoT). The "Action Plan for Promoting the Innovative Development of the Internet of Things Industry (2026-2028)," jointly issued by nine ministries including the Ministry of Industry and Information Technology, sets a clear objective for the core IoT industry's scale to exceed 3.5 trillion yuan (approximately $480 billion) by 2028. The plan also outlines aggressive sub-targets, including reaching 10 billion IoT device connections and developing over 50 new advanced technical standards. This directive aims to accelerate breakthroughs in key technologies like advanced sensors, network communication, and data processing, positioning China to dominate the next generation of connected infrastructure.
Open-Source Chips to Underpin IoT Expansion
Supporting this national strategy is a burgeoning hardware ecosystem focused on open-source technology. The recent establishment of the Hong Kong RISC-V Alliance (HKRVA), backed by the Hong Kong Investment Corporation Limited (HKIC), demonstrates a coordinated effort to build the foundational chip architecture needed for this IoT expansion. RISC-V, an open-source alternative to proprietary architectures like ARM, allows for greater customization and cost efficiency in chip design, which is critical for the diverse and massive scale of IoT devices. The alliance, which includes key industry players like StarFive and China Mobile, aims to create a hub for international collaboration and accelerate the development of chips specifically for smart city and IoT applications.
Smart Energy and Cities Emerge as Key Testbeds
A core part of the strategy involves a "use case-driven and application-led" approach, focusing on tangible commercial and industrial deployments. The energy sector provides an early example of this integration. The Hong Kong and China Gas Company (Towngas), a founding member of the RISC-V alliance, has already co-developed and deployed the "TGSE Chip"—a RISC-V-based IoT chip—in its smart gas meters on the Chinese mainland. This application showcases how specialized, open-source chips can enhance operational efficiency and data security in critical infrastructure. The plan explicitly encourages creating "Application Demonstration Zones" in areas like smart cities, smart energy, and fintech, signaling clear pathways from policy and R&D to large-scale industrial commercialization.
