China Faces Hurdles in Its Bid To Rival Nvidia's AI Chip Dominance

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China Faces Hurdles in Its Bid To Rival Nvidia's AI Chip Dominance
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Chinese companies are striving to create competitive alternatives to Nvidia's AI chips as Beijing seeks to reduce reliance on American technology. However, significant obstacles remain, including US export restrictions hindering domestic semiconductor manufacturing and a shortage of technical expertise.

Chinese companies are ramping up efforts to produce a viable alternative to Nvidia 's chips that power artificial intelligence as Beijing continues its efforts to wean itself off American technology.

However, it's the U.S. sanctions and their knock-on effects that pose the biggest roadblocks to China's ambitions. "The key bottleneck will be domestic foundry leader SMIC, which will have a complex problem of dividing limited resources for its advanced node production between Huawei, which is taking up the lion's share currently, the GPU startups, and many other Chinese design firms which have been or may be cutoff from using global foundry leader TSMC to manufacture their advanced designs," Triolo told CNBC.

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