China plans to triple the production of artificial intelligence chips next year as part of its race against the United States through technology control. The AI market in the country is increasing even with NVIDIA’s chip sales restrictions imposed by the United States, due to the massive government support in the area.
Three new Chinese factories focused on building complex chips used by IAS are being built – one of them will be operational at the end of 2025 and the other two in 2026. The endeavor is an association between Huawei – the largest supplier of network and telecommunications equipment in the world – and the China government, although the company denies it.
SMIC, China’s leading semiconductor manufacturer, aims to double its production of 7 nanometer chips by 2026, which are more performance, lower energy consumption and greater efficiency than other variants of technology.
Other companies are also trying to circumvent US restrictions on Nvidia chips, essential for IAS operation. The greatest example is Deepseek, OpenAi’s rival, which has been developing a new pattern of chips based on FP8 data format – less accurate but more efficient. This pattern already influences the designs of Cambricon, Huawei and startups like Biren and Metax.
A heavy investment is also being done in research involving memory chips. CXMT, which manufactures RAM chips, is testing a new production line called HBM3, scheduled for release in 2026. The goal is to reduce the dependence of the production chain in foreign companies such as Samsung and Micron.
Source: https://www.ocafezinho.com/2025/08/27/mercado-chines-de-ia-vai-triplicar-producao-em-tres-anos/
