It is reported that, according to inside sources, the Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made AI chips, instructing projects less than 30% complete to remove foreign chips and cancel any plans to purchase them. This directive is expected to significantly impact foreign chipmakers, particularly US-based Nvidia, which has been lobbying to sell its chips in China. The move aligns with Beijing’s ongoing efforts to reduce reliance on foreign technology in critical infrastructure and is anticipated to bolster domestic semiconductor companies such as Huawei, Semiconductor Manufacturing International Corporation (SMIC), MetaX, Cambricon Technologies, and Alibaba.
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