Bank of America just raised its EUR/USD forecast
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.
The move comes after the U.S. allowed Nvidia to resume its China-specific H20 AI chips, but Beijing has reportedly urged domestic firms to avoid using them.
Beijing had expressed concerns over "backdoor" controls and security lapses in U.S.-made chips, claims that Nvidia has denied.
A Financial Times report on Thursday showed that China’s move to restrict sales of Nvidia’s H20 chip was prompted by remarks from U.S. Commerce Secretary Howard Lutnick that Beijing found “insulting."