BEIJING (Reuters) – Beijing city authorities announced subsidies for companies buying domestically produced artificial intelligence (AI) chips, as China seeks to develop its semiconductor industry and reduce dependence on foreign technology.
A document outlining the initiative released by the Beijing Municipal Economic Information Bureau on April 24 does not specify the size of the subsidy.
Referring to chips known as graphics processing units (GPUs), the document states that “companies that purchase domestically managed GPU chips for intelligent computing services will receive a fee based on a percentage of their investment. They will receive support.”
Under this initiative, the city aims to become 100% independent in smart computing infrastructure hardware and software by 2027.
Achieving self-sufficiency in AI chips, essential for training AI models, is an urgent challenge for China as the US tightens export controls on advanced computing products to China due to national security concerns. .
Restrictions announced by the U.S. Department of Commerce late last year prevented market leader Nvidia from exporting its advanced chips, including its A800, H800 and H100, to China.
China is developing its own AI chip industry, where Huawei Technologies' Ascend 910 chip is widely seen as a potential replacement for U.S. rival Nvidia products.
A government-related group known as the “Intelligent Computing Center” has become the country's main buyer of AI chips.
(Reporting by Liam Maw and Brenda Goh; Editing by Christopher Cushing)
