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China To Provide Large-Scale Subsidies For Local AI Chips, Encouraging Domestic Adoption

China To Provide Large-Scale Subsidies For Local AI Chips, Encouraging Domestic Adoption

China has implemented a new initiative to promote domestic AI chip production by providing subsidies to potential buyers.

China will promote domestic AI chip sales through subsidies, promoting the nation's interest

At this point, it is clear that China has started to change its approach towards the AI ​​sector. Instead of relying on international firms like NVIDIA, Intel and AMDthe nation has decided to go its own way, prioritizing domestic production of AI chips in every possible way. Reuters Beijing City has agreed to provide subsidies to domestic AI chip users, and the local government will finance a certain amount of total investment, with the sole purpose of promoting domestic products over others, the report said. Is.

Well, this is one of the ways that China is planning to become a self-sufficient nation in the AI ​​semiconductor sphere since Beijing realized that the US sanctions have hit them hard, and that The only way to combat is to find alternatives preferably. Local. Speaking of regional solutions, let's take a quick look at what Chinese companies have to offer for the AI ​​markets, starting with Huawei.

Companies that purchase locally controlled GPU chips for intelligent computing services will receive support based on a certain percentage of their investment.

– Beijing Municipal Bureau of Economy and Information Technology by Reuters

Huawei is a firm that stands against the strict policies of the United States, whether it is in the mobile market or in AI computing. of the company The Ascend 910B AI chip has made huge strides in the markets., not because it is a native solution, but because the performance the chip has shown has attracted many clients. it was reported in the past Given that Chinese companies have refused to buy any of NVIDIA's new AI GPUs because they see domestic alternatives as better choices, Huawei is a top contender simply because of the company's reputation and the quality it brings to markets. Is. Huawei is planning too. Start in-house production of HBM memory. Which will be a key development for China's AI industry.

Image Source: Wccftech (AI Generated)

Apart from Huawei, Firms like Alibaba and Tencent have also developed their own custom AI solutions., but they're relatively old, which means they haven't seen much market adoption. Underdogs like BirenTech and Moore's Threads have also come out with attractive AI chips, and it's only a matter of both time and progress before we see such companies emerge in mainstream markets.

1st Tier “Technology” Companies:

  • Huawei
  • Alibaba
  • Bedouin
  • Tencent

Second Tier “Enterprise” Companies:

Third-tier “business” companies:

  • Moor Threads
  • JingJiawei
  • Berean Tech
  • Tianshu Zixin
  • Xiangdixian
  • Mickey
  • Intel
  • Cambrian
  • Jing Jiaoi

With US companies having limited business in China, it will be interesting to see how big the impact is on local AI markets as it is inevitable that, while ambitious, the lack of advanced computing power will hurt Chinese firms.

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