Beijing's Push for Local Chips in AI Data Centers

Monday, 30 September 2024, 02:37

Beijing is urging Chinese companies to prioritize local chips for data centers over Nvidia's offerings. This strategy aims to boost China's chip manufacturing and reduce dependency on foreign technology. The push comes amid escalating tensions in East Asia over semiconductor production and supply chains.
Digitimes
Beijing's Push for Local Chips in AI Data Centers

Beijing's Imperative: Local Chips Over Nvidia

In a significant shift, Beijing is intensifying its appeal for Chinese firms to exclusively source locally produced AI chips rather than relying on Nvidia. This move aligns with China's long-term strategy to dominate the semiconductor landscape, particularly in the IC manufacturing sector.

The Imperative for Domestic Manufacturing

  • China's chip industry is under state-led pressure to enhance production.
  • Bans and restrictions on foreign chips, particularly from the US, are driving this initiative.
  • Increased investment in HUAWEI and other local companies for chip development.

The Future of AI and Data Centers in China

As data centers proliferate, the reliance on foreign technology is perceived as a vulnerability. Thus, Beijing aims to foster a self-sufficient ecosystem for chips and components.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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