China cities push for AI chip self-sufficiency to cut Nvidia reliance – report

Investing.com-- Major Chinese municipalities are setting targets to achieve at least 70% self-sufficiency in artificial intelligence semiconductors by 2027, aiming to reduce reliance on U.S. leader Nvidia (NASDAQ:NVDA), the Nikkei reported on Thursday, citing a Shanxi Securities note.

Shanghai has outlined a plan for domestic control over 70% of chips used in data centres, while Beijing has set a more ambitious goal of 100% by 2027, the report said.

Guiyang, home to several large-scale data centres including one used by Apple (NASDAQ:AAPL), has called for about 90% of chips in new facilities to be Chinese-made, it added.

The push echoes President Xi Jinping’s call in April for China to achieve “self-reliance and strength” in AI chips.

Nvidia held around 80% of China’s AI chip market in early 2024, but Shanxi Securities projects that share could fall to 50-60% within five years as Huawei, Cambricon (SS:688256) and Baidu ’s (HK:9888) Kunlun unit expand production.

Huawei’s Ascend 910B currently delivers about 85% of the power of Nvidia’s H20, while its next-generation 920 chip is expected to rival U.S. products, the Nikkei report said.