Abstract: Integrated circuits are a fundamental, leading, and strategic industry that is related to the development of the national economy and society. They are the cornerstone of maintaining China's national defense security and the embodiment of the country’s comprehensive strength. Affected by the power game between China and the United States and geopolitical factors, Western powers, mainly the United States, continue to block, suppress, and embargo China's integrated circuit industry supply chain, continuously implementing the “small courtyard high wall” strategy, attempting to promote the “de Sinicization” of global industrial chain reconstruction. This article summarizes the severe external situation and internal development status faced by China's integrated circuit industry chain, deeply analyzes the main challenges of China's integrated circuit industry at present, and proposes strategies for China's integrated circuit industry to cope with the new stage.