AI chips to 'leave the US', Chinese local governments strive to increase self-sufficiency rate to over 70% by 2027

According to reports, the Shanghai Municipal Government plans to increase the proportion of chips used in AI data centers designed or manufactured by Chinese companies to over 70% by 2027. The Beijing Municipal Government is striving to increase the ratio to 100%. The picture shows the exhibition site of the 2025 World Artificial Intelligence Conference held in Shanghai in July this year, which is Huawei's exhibition area.

Major local governments in China plan to increase self-sufficiency in artificial intelligence (AI) chips to over 70% by 2027 to reduce dependence on Nvidia.

According to a report by Nikkei Chinese website on Monday (August 25th), according to the plan of the Shanghai Municipal Government, by 2027, the proportion of chips used in AI data centers designed or manufactured by Chinese companies should increase to over 70%.

The plan of the Beijing Municipal Government also shows that it aims to increase the ratio to 100% by 2027. Gui'an New District, Guiyang City, Guizhou Province, which gathers data centers from companies such as Apple Inc., requires that about 90% of the chips in the AI data centers currently under construction in the district be made in China.

The goal of local governments to increase self-sufficiency is to follow the guidelines of the Chinese leadership. In late April this year, the Political Bureau of the Communist Party of China held a seminar on AI related topics, proposing policies to support the development and production of AI semiconductors, emphasizing the need to fully leverage the advantages of the new national system and adhere to self-reliance and self-improvement.

According to data from Shanxi Securities, Nvidia's market share in China's AI semiconductor industry will reach 80% by early 2024. The Ascend 910 series developed by Huawei is attempting to replace Nvidia.

According to Chinese media reports, Huawei's main product, the Ascend 910B, has computing power equivalent to about 85% of the Nvidia H20. H20 is an advanced AI chip currently approved for sale by Nvidia in China.

In addition to Huawei, Baidu's Kunlun and Zhongke Cambrian Technologies are also intensifying the development of AI chips.

Shanxi Securities predicts that Nvidia's market share in China will decrease to 50-60% in the next five years, while the market share of Chinese companies will increase to 40-50%.

AI chips to 'leave the US', Chinese local governments strive to increase self-sufficiency rate to over 70% by 2027

According to reports, the Shanghai Municipal Government plans to increase the proportion of chips used in AI data centers designed or manufactured by Chinese companies to over 70% by 2027. The Beijing Municipal Government is striving to increase the ratio to 100%. The picture shows the exhibition site of the 2025 World Artificial Intelligence Conference held in Shanghai in July this year, which is Huawei's exhibition area.

Major local governments in China plan to increase self-sufficiency in artificial intelligence (AI) chips to over 70% by 2027 to reduce dependence on Nvidia.

According to a report by Nikkei Chinese website on Monday (August 25th), according to the plan of the Shanghai Municipal Government, by 2027, the proportion of chips used in AI data centers designed or manufactured by Chinese companies should increase to over 70%.

The plan of the Beijing Municipal Government also shows that it aims to increase the ratio to 100% by 2027. Gui'an New District, Guiyang City, Guizhou Province, which gathers data centers from companies such as Apple Inc., requires that about 90% of the chips in the AI data centers currently under construction in the district be made in China.

The goal of local governments to increase self-sufficiency is to follow the guidelines of the Chinese leadership. In late April this year, the Political Bureau of the Communist Party of China held a seminar on AI related topics, proposing policies to support the development and production of AI semiconductors, emphasizing the need to fully leverage the advantages of the new national system and adhere to self-reliance and self-improvement.

According to data from Shanxi Securities, Nvidia's market share in China's AI semiconductor industry will reach 80% by early 2024. The Ascend 910 series developed by Huawei is attempting to replace Nvidia.

According to Chinese media reports, Huawei's main product, the Ascend 910B, has computing power equivalent to about 85% of the Nvidia H20. H20 is an advanced AI chip currently approved for sale by Nvidia in China.

In addition to Huawei, Baidu's Kunlun and Zhongke Cambrian Technologies are also intensifying the development of AI chips.

Shanxi Securities predicts that Nvidia's market share in China will decrease to 50-60% in the next five years, while the market share of Chinese companies will increase to 40-50%.