China plans to increase its artificial intelligence (AI) chip production by up to three times in the coming years to reduce foreign dependency. The country’s goal is to become completely independent in AI chips.
China is accelerating its efforts to develop artificial intelligence technologies domestically. The country is expected to triple its AI chip production within the next few years.
Considering recent geopolitical developments, it is clear that China has started on a path to move away from Western-centric AI hardware. Although this transformation will take years, China has already begun preparations. According to a report by the Financial Times, the country plans to increase its AI chip production by up to three times in the coming years. Powerful domestic companies such as Huawei, DeepSeek, and Cambricon are expected to benefit the most from this move.
Huawei, SMIC, and Cambricon Come to the Forefront
It is reported that a dedicated production facility for Huawei’s AI chips will be operational before the end of the year, with two more factories set to launch next year. It is claimed that the total production capacity of these facilities will approach SMIC’s figures. Additionally, SMIC plans to double its 7nm production by 2026.
Compared to a few years ago, China’s AI chips are in a position to compete with NVIDIA. Huawei’s Ascend 910D processor and Cambricon’s 690 series are prominent examples. Interestingly, DeepSeek recently announced that they would adapt their AI models to the FP8 format. Although no Chinese chip currently offers FP8 support, the recent increase in Cambricon’s stock value suggests that they may have developed a solution in this direction.
Reducing dependency on foreign hardware has become a national priority for China. According to local sources, the Beijing Municipality aims for 100% self-sufficiency in the field of AI computing. For now, although China lags behind NVIDIA, advancements in areas such as semiconductor manufacturing processes, high-bandwidth memory, and packaging technologies show that a strong ecosystem is forming. This is a sign that Chinese firms may soon develop competitive solutions.
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