China To Meet AI Market Demand With Local Chips

(MENAFN- Asia Times) China is going to rely more on the use of local artificial intelligence (AI) chips than foreign chips, as it can no longer obtain Nvidia's most-advanced chips due to the United States' chip export controls.

The country does not lack AI chip makers, which include Huawei Technologies, Moore Threads, Cambrian and Stream Computing.

Their total shipment will reach 1.34 million units in 2023, up 22.5% from last year, according to the International Data Corporation (IDC), a market intelligence provider.

However, technology experts said a lot more has to be done before Chinese AI chips can become popular.

Lin Yonghua, vice president and chief engineer at the Beijing Academy of Artificial Intelligence, said China should develop some technology frameworks that enable servers to use different kinds of AI chips at the same time.

He said such a move can help resolve the nation's AI chip shortage problem. He said there's reason to hope that more and more of China's data centers will shift to use local AI chips.

Robust market growth

China's AI server markets will grow 82.5% to US$9.1 billion yuan this year, according to a report published by IDC and Inspur Electronic Information Industry Co Ltd during the annual AI Computing Conference (AICC) in Beijing on November 29.

The figure will increase to US$13.4 billion yuan in 2027, 47% up from the 2023 level, said the report.

The compound annual growth rate of China's AI computing power will be 33.9% in 2022-2027, compared with the 16.6% annual growth of traditional computing power.

IDC said the global AI server markets will grow from US$19.5 billion in 2022 to US$34.7 billion in 2026. Globally, servers that can create AI-generated content (AIGC), including texts, images, songs and videos, will account for 31.7% of all servers in 2026, up from the current level of 11.9%.


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