US EditionChina Bans Foreign AI Chips in State-Funded Data Centers
China mandates state-funded data centers to use only domestic AI chips, aiming to cut reliance on foreign technology amid U.S. export controls and geopolitical tensions.
- In recent weeks, China ordered all new state-funded data centres to use only domestically produced artificial intelligence chips, in one of Beijing's most sweeping moves, two sources said.
- U.S. export controls prompted Beijing to push for semiconductor self-sufficiency after Washington's 2019 export bans limited China’s access to advanced chips.
- Several projects have been suspended after regulators instructed that data centre projects less than 30% complete must remove foreign chips or cancel plans, with state funding totalling more than US$100 billion since 2021.
- The move hands advantage to domestic suppliers like Huawei Technologies, Cambricon, Moore Threads, and Enflame, while foreign firms such as Nvidia, AMD, and Intel face exclusion from lucrative government-backed projects.
- Some advanced chips remain available via grey-market channels, and developers continue to rely on Nvidia's software ecosystem despite its market share plunging to nearly zero this year.
26 Articles
26 Articles
China bans foreign AI chips as Jensen Huang pivots strategy; Nvidia joins India tech alliance
The Chinese government has issued an official guidance which mandates that the new data centre projects which have received funds from the State will have to use domestic artificial intelligence chips instead of foreign AI chips.
Exclusive: China bans foreign AI chips from state-funded data centres, sources say
The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, two sources familiar with the matter told Reuters.
Times of India
China bans foreign AI chips from state-funded data centres
China has ordered state-funded data centres to use only locally made AI chips, forcing those under 30% complete to remove foreign processors like Nvidia’s. The move boosts domestic firms such as Huawei but threatens foreign chipmakers’ revenues, underscoring China’s push for AI self-reliance amid ongoing U.S. tech restrictions.
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