ICYMI – Reuters reports that China has ordered all state-funded data centres to use only domestically made AI chips, in a move likely to hit U.S. chipmakers including Nvidia, AMD, and Intel. The directive, issued in recent weeks, requires projects under 30% completion to remove or cancel purchases of foreign chips, while more advanced projects will be reviewed individually.
The policy marks one of Beijing’s most assertive steps yet to eliminate foreign technology from critical infrastructure and accelerate AI chip self-sufficiency, giving local producers such as Huawei a major boost.
The move comes amid easing trade tensions between Washington and Beijing, though chip technology remains a flashpoint. Nvidia, which once held 95% of China’s AI chip market, has seen its share fall to zero following U.S. export restrictions.
Analysts say the decision could reshape China’s $100 billion data centre sector and deepen the divide between U.S. and Chinese AI capabilities, as domestic firms expand under tighter state protection.
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Beijing’s latest move intensifies U.S.–China tech decoupling, threatening chipmakers’ China revenue while accelerating domestic AI development. The ban signals long-term support for local semiconductor firms like Huawei and Cambricon.
This article was written by Eamonn Sheridan at investinglive.com.
