Xi Jinping's China Forges Ahead With Better In-House AI Chips To Cut Reliance On Nvidia, Other Foreign Sources Amid US Curbs

In a significant development, Chinese chipmakers are making headway in producing high bandwidth memory (HBM) semiconductors, a crucial component in artificial intelligence (AI) chipsets. This progress marks a key step in China’s efforts to diminish its dependence on foreign suppliers amid ongoing tensions with the U.S.

What Happened: China’s leading DRAM chip manufacturer, CXMT, has successfully developed sample HBM chips in collaboration with chip packaging and testing company Tongfu Microelectronics, Reuters reported on Wednesday. These chips are currently being showcased to clients.

Another Chinese firm, Wuhan Xinxin, is constructing a factory capable of producing 3,000 12-inch HBM wafers per month. This initiative, which commenced in February, is a clear indication of China’s commitment to advancing its chip sector.

Both CXMT and Wuhan Xinxin are private companies that have received local government funding to drive technological advancements in China’s chip sector.

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Why It Matters: The recent progress in China’s chip sector is a significant development in the global semiconductor industry, especially considering the country’s topped the U.S. in semiconductor spending. This is part of the broader trend of China’s increasing efforts to reduce its reliance on foreign-made chips, particularly those from NVIDIA Corp.

Moreover, the recent progress in the chip sector follows another significant breakthrough. Chinese researchers have developed a cost-effective technique for mass-producing optical chips, which could potentially soften the impact of U.S. sanctions.

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