Abstract: With the construction and development of new power systems, the operation environment of key power equipment has changed, and the operation process is facing more risks. The condition monitoring and diagnosis（CMD） technology of critical power equipment is the guarantees of its normal operation, but there are still shortcomings at present. The sensor chip integrating signal acquisition, data analysis, and information transmission can realize online, real-time, and accurate CMD of key power equipment. Based on the basic concept of the sensor chip for the equipment CMD for new power systems, this paper summarizes the development status of four key technologies of sensing acquisition, signal processing, data analysis, and information transmission of the sensor chip, and points out the challenges faced by the key technologies. Finally, the future research directions of CMD of critical power equipment are prospected.