China bans foreign AI chips from state-funded data centres

According to Reuters, the Chinese government has reportedly banned foreign AI chips from state-funded data centres.

Foreign AI chip ban in China

China's state-funded data centres are not allowed to use AI chips from the U.S. and others anymore

According to Reuters sources, authorities in China have recently mandated that partially built data centres—those less than 30 percent complete—must eliminate foreign chips or halt procurement plans, with more developed projects subject to case-by-case evaluation.

To keep it short, this new directive bans Chinese companies from using AI chips from U.S. firms like Nvidia and AMD. The data centres funded by the central or local government include those by universities and research institutions.

The policy is being rolled out gradually, with full compliance expected by 2027.

The facilities must now use domestically produced AI chips for new purchases and upgrades.

This move is seen as China's way to escalate its push for tech self-reliance amid U.S. export controls, especially in critical sectors like AI and cloud computing. It also responds to U.S. export restrictions that limit China's access to advanced chips used in training large AI models.

While their chips currently lag behind U.S. counterparts in performance, Chinese firms such as Huawei, Hygon, and Moore Threads are expected to benefit from the shift and will likely enhance China's domestic chip-making capabilities in the coming years.

To read the full report, see the source link below.

Source: Reuters