Beijing Announces Subsidies for Domestic AI Chip Purchases to Boost Self-Reliance

Beijing subsidizes domestic AI chip purchases to boost China's semiconductor self-reliance amid U.S. tech rivalry and export restrictions.

author-image
Trim Correspondents
Updated On
New Update
Beijing Announces Subsidies for Domestic AI Chip Purchases to Boost Self-Reliance

Beijing Announces Subsidies for Domestic AI Chip Purchases to Boost Self-Reliance

The Beijing city authorities have unveiled a new initiative to provide subsidies for companies that purchase domestically produced artificial intelligence (AI) chips. This move comes as part of China's broader efforts to develop its semiconductor industry and reduce reliance on foreign technology. The subsidies will specifically support firms that acquire domestically controlled GPU chips for intelligent computing services.

China has set an ambitious target of achieving 100% self-reliance in smart computing infrastructure hardware and software by 2027. The urgency to attain self-sufficiency in AI chips, which are critical for training AI models, has intensified as the United States tightens restrictions on exporting advanced computing products to China, citing national security concerns.

Why this matters: The subsidies for domestic AI chip purchases in Beijing highlight China's determination to bolster its semiconductor industry and reduce dependence on foreign technology. As the U.S.-China tech rivalry intensifies, this initiative emphasizes the strategic importance of AI chips and the broader implications for technological self-reliance and national security.

To cultivate its own AI chip industry, China has been focusing on developing homegrown alternatives to products from U.S. companies like Nvidia. Huawei Technologies' Ascend 910 chips have emerged as a potential contender in this space. Government-related entities, known as "intelligent computing centers," have been the primary buyers of these domestic AI chips.

While the specific sizes of the subsidies were not disclosed, the Beijing city authorities' announcement sends a clear signal of their commitment to supporting the adoption of domestically produced AI chips. This initiative is expected to provide a significant boost to Chinese chip manufacturers and encourage more companies to opt for homegrown solutions.

As China navigates the challenges posed by U.S. export restrictions and the global chip shortage, the success of its domestic AI chip industry will be closely watched. The Beijing subsidies demonstrate China's determination to achieve self-reliance in this critical technology and reduce its vulnerability to external pressures in the rapidly evolving AI landscape.

Key Takeaways

  • Beijing to subsidize domestic AI chip purchases to boost self-reliance.
  • China aims for 100% self-reliance in smart computing hardware/software by 2027.
  • Subsidies support firms acquiring domestically controlled GPU chips for AI services.
  • China develops homegrown AI chips like Huawei's Ascend 910 to reduce U.S. reliance.
  • Subsidies aim to support Chinese chip makers and encourage domestic AI chip adoption.