Xiaomi Revives Semiconductor Production as China Pushes for Top-End AI Chips
Xiaomi is reviving its semiconductor production to compete in the high-end smartphone market. Meanwhile, China is intensifying efforts to develop top-end AI microchips, aiming to reduce dependence on US imports.
Huawei's Ascend 910C chip is currently leading the pack in China for training large language models. However, due to US restrictions, Chinese companies are shifting towards domestic chips. Huawei plans to double its production of the Ascend 910C in the coming year.
The challenge lies in matching Nvidia's capabilities, particularly in high-bandwidth memory and packaging. Despite these hurdles, companies like Huawei, Alibaba, and Baidu are making strides in developing competitive AI microchips. Alibaba's PPU and Baidu's Kunlun chip are notable examples. Manufacturing partner SMIC is also playing a significant role in this progress.
China's goal is to achieve full end-to-end parity with Nvidia's best chips by 2030 or later. This ambition is fueled by heavy investments in AI technology, with Alibaba's shares doubling since January.
Xiaomi's return to semiconductor production and China's push for top-end AI microchips reflect a global race in tech innovation. Despite challenges and US pressure on Nvidia, Chinese companies are making significant strides in AI chip development.
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