Beijing, September 27, 2024 – In a strategic move to bolster its semiconductor industry, China is intensifying pressure on domestic companies to source artificial intelligence chips from local manufacturers rather than from Nvidia Corp. This initiative is part of China's broader effort to counteract US sanctions that have impacted its technology sector.
Regulators in China are reportedly discouraging the purchase of Nvidia's H20 chips, which are critical for developing and running AI models. Instead of implementing a formal ban, the Chinese government is providing guidance to ensure that its own AI startups are not adversely affected while simultaneously navigating the delicate relationship with the United States. Sources familiar with the situation indicated that this approach aims to avoid further escalating tensions between the two nations.
The implications of this policy shift are significant, as it reflects China's commitment to achieving technological self-sufficiency and reducing reliance on foreign technology. This move could reshape the competitive landscape in the global semiconductor market and heighten the ongoing tech rivalry between the US and China.