Gree Electric: Chip Team Nears 1,000, Tech Staff Exceeds 60%

CNBC AI News, August 7th — Investor scrutiny surrounding Gree Electric’s foray into the chip business has surfaced recently, prompting questions directed at the company on its interactive platform.

The concerns stem from Gree’s significant R&D expenditure. One investor noted: “From the start of 2020 through Q1 2025, Gree Electric’s R&D investment totaled 34 billion yuan. It’s clear that only a portion of this is allocated to the chip business. By comparison, Semiconductor Manufacturing International Corporation (SMIC) invested 25.2 billion yuan, and GigaDevice invested 4.68 billion yuan during the same period.”

Furthermore, public data reveals that Gree’s chip subsidiary, Zero Boundary, has only 18 employees registered for social security, while GigaDevice has 431 and SMIC boasts thousands.

“While Gree’s chip products and business model differ from those of SMIC and GigaDevice, this comparison offers investors some perspective. The question is, why does Zero Boundary only have 18 employees registered? What is the total headcount of Gree’s chip team?”

Gree Electric responded that it entered the chip domain in 2015, establishing both a Microelectronics Institute and a Power Semiconductor Institute within its Communications Technology Research Institute. In 2018, Gree founded Zhuhai Zero Boundary Integrated Circuit Co., Ltd., primarily focused on the R&D and sales of MCU chips, smart home chips, and power devices. This was followed in 2022 by the creation of Zhuhai Gree Electronic Components Co., Ltd., concentrating on third-generation semiconductor silicon carbide wafer manufacturing, power device packaging and testing, and semiconductor testing services.

Currently, Gree Electric states that its “chip team numbers nearly 1,000 employees, with technical personnel accounting for over 60%.”

Regarding the investor’s query about Zero Boundary’s low social security registration numbers, Gree clarified that the data has been updated.

Earlier this year, Gree Chairwoman Dong Mingzhu addressed skepticism surrounding Gree’s chip manufacturing ambitions in a CCTV program, also discussing the company’s chip factory construction.

Dismissing the doubts, Dong Mingzhu stated, “People are making chips too mysterious!” She emphasized that Gree’s chip venture wasn’t a reckless gamble but rather a responsibility and commitment for a Chinese manufacturing leader.

She recounted that initial reactions to her chip aspirations were largely skeptical. “Firstly, they believed I lacked the talent. How could an air conditioner manufacturer venture into chipmaking, a high-tech field?”

Gree has built what it claims is Asia’s first fully automated silicon carbide factory, handling the entire chip manufacturing process in-house. This vertical integration strategy aims to bolster Gree’s control over its supply chain and reduce reliance on external vendors.

Dong Mingzhu highlighted, “This chip factory didn’t use a single penny of state funding. We have the capability ourselves. The factory not only serves as a model for Gree but can also provide complete environmental equipment solutions for more semiconductor manufacturers.” This ambition suggests that Gree aims to leverage its experience to become a provider of equipment and expertise to the broader semiconductor industry, potentially opening up a new revenue stream and diversifying its business model.