How China plans to lower chip reliance on US
What's the story
In a major policy shift, China has mandated its data centers to source more than half of their computing chips from domestic manufacturers. The move is part of Beijing's broader strategy to reduce dependence on foreign technology, especially amid tightening US export controls. The mandate was first introduced by Shanghai municipality in March last year and has now become a nationwide policy.
Goal
Policy aims to strengthen China's AI computing resources
The new policy aims to bolster the indigenous semiconductor sector by mandating public computing hubs across China to source over 50% of their chips from domestic producers. The initiative is part of a broader plan to strengthen artificial intelligence computing resources in China's financial hub. It was supported by government agencies like the National Development and Reform Commission (NDRC) and Shanghai Communications Administration (SCA), both under the Ministry of Industry and Information Technology (MIIT).
Expansion
Commitment to reducing reliance on foreign technology
An industry adviser revealed that the Shanghai chip quotas for intelligent computing centers had become a mandatory nationwide policy earlier this year. This development highlights China's commitment to reducing its reliance on foreign technology and promoting domestic production of computing chips.