China has officially begun mass production of a revolutionary type of AI chip that breaks away from traditional binary processing. Developed by researchers at Beihang University and led by Professor Li Hongge, this chip employs a Hybrid Stochastic Number (HSN) architecture, which integrates both binary and stochastic (probability-based) logic. This allows it to process data in a way that is more efficient, fault-tolerant, and better suited for certain AI and edge computing tasks compared to conventional binary chips. What makes this development particularly noteworthy is its strategic design choices. The chip is manufactured using mature 110 nm and 28 nm processes—technologies that do not require the most advanced lithography tools like EUV (Extreme Ultraviolet Lithography), which are heavily restricted due to international sanctions. This move effectively allows China to bypass some of the global constraints imposed on its semiconductor sector. The chip has already been deployed in practical applications such as aviation systems, industrial control equipment, and intelligent displays, showcasing its versatility and readiness for real-world use. In essence, this "non-binary" AI chip is not just a technical innovation, but also a symbol of China’s strategic push toward semiconductor independence. It aims to overcome the "power wall" (reducing energy consumption) and the "architecture wall" (ensuring compatibility with existing chip infrastructure), which are two major hurdles in the chip industry today. While the technology is still in early stages and awaits broader third-party evaluation, its mass production marks a significant milestone that could influence the future direction of AI hardware design globally.