The features and deficiencies in the traditional applications of seamless communication standards IEC 61850 are analyzed, the hardware is used encoding and decoding for SV and GOOSE. SoC architecture design based on the IEC 61850 standard is proposed, The solutions of IEC 61850 chip integrated with intelligent devices are discussed, and the schemes of secondary equipment localization are investigated. the revolutionary effects of the application of IEC 61850 chip on smart grid communication system architecture and performance is discussed.