China aims to triple its AI chip production. This plan is part of a strategy to reduce the country’s technological dependence on the West. According to the latest information, China will significantly increase its domestic production in the coming years. Local companies such as Huawei, DeepSeek, and Cambricon are expected to benefit the most from this initiative.

China is accelerating chip production

In this direction, a dedicated production facility for Huawei’s AI chips will become operational by the end of this year. Two more factories are planned to be commissioned next year. The total production capacity of these facilities will approach that of SMIC, one of China’s largest chip manufacturers. SMIC also plans to double its 7nm production by 2026.

AI chips developed by Chinese companies have reached a level where they are more competitive with Western rivals like NVIDIA than they were just a few years ago. Huawei’s Ascend 910D processor and Cambricon’s 690 series are among the most prominent examples.

Meanwhile, DeepSeek’s announcement that they will adapt their AI models to the FP8 format is also noteworthy. Currently, no chips manufactured in China offer FP8 support. However, the recent surge in Cambricon’s stock value suggests the company may have developed a solution in this direction.

Reducing dependence on foreign hardware has become a national priority for China. According to sources in the country, the Beijing Municipal Government is aiming for 100% self-sufficiency in AI computing.

While China currently lags behind NVIDIA, advancements in areas such as semiconductor manufacturing processes, high-bandwidth memories, and packaging technologies indicate the emergence of a strong domestic ecosystem. This suggests that Chinese companies may be able to offer more competitive solutions in the near future.