China’s chipmakers are preparing to triple the nation’s artificial intelligence (AI) chip production by 2026, in an effort to reduce heavy reliance on Nvidia, according to the Financial Times.
Huawei is expected to start production at a new plant dedicated to AI chips by the end of this year, while two additional facilities are scheduled to launch in 2026, sources told the newspaper. These plants are primarily designed to supply Huawei, although their exact ownership structure has not been clarified. Huawei itself stated to the FT that it does not plan to directly own these factories.
If completed, the three facilities combined could exceed the current output of similar production lines at Semiconductor Manufacturing International Corporation (SMIC), China’s leading chipmaker. The FT also reported that SMIC intends to double its manufacturing capacity for 7-nanometre chips next year, with Huawei as its largest client.
Neither Huawei nor SMIC immediately responded to Reuters’ requests for comment.
Beijing is rapidly pushing forward with domestic AI chip development, aiming to design processors capable of competing with Nvidia’s China-specific H20 chip. Chinese officials have raised security concerns about Nvidia’s products, further driving the push for homegrown solutions.
Reuters previously reported that Huawei plans to begin mass production of its most advanced AI chip in the first quarter of 2025, despite ongoing challenges from U.S. trade restrictions.
