Beijing Offers Subsidies for Companies That Buy Local AI Chips as China Cuts Reliance on Foreign Technology

By Trisha Andrada

Apr 26, 2024 07:02 AM EDT

Beijing city officials are providing subsidies for businesses that buy artificial intelligence (AI) chips made in China. The move comes as the nation aims to strengthen its semiconductor sector and become less dependent on foreign technology. 

Beijing Unveils AI Chip Subsidy Plan for Local Businesses

According to Reuters, the Beijing Municipal Bureau of Economy and Information Technology announced the initiative in a document dated April 24, but the sizes of the subsidies were not disclosed.

The document said: "Companies that purchase domestically controlled GPU [graphics processing unit] chips for intelligent computing services will receive support based on a certain percentage of their investment."

This program reportedly aims for the city to achieve 100% self-reliance in smart computing infrastructure hardware and software by 2027.

Read Also: US Commerce Secretary Criticizes Chip in Latest High-End Huawei Phone, Says It's 'Not Nearly as Good' as American Chips

ai chip

(Photo : Igor Omilaev on Unsplash)

Chip War Between the US and China Continues

As the United States imposes stricter restrictions on exporting advanced computing equipment to China because of national security concerns, the Chinese government's pursuit of AI chip self-sufficiency has become more urgent.

Due to restrictions established by the US Department of Commerce last year, exports of advanced chips such as the A800, H800, and H100 from market leader Nvidia to China were prevented.

As China tries to grow its own AI chip industry, the Ascend 910 processors from Chinese tech firm Huawei Technologies are widely seen as a potential substitute for US rival Nvidia.

Read More: China Slams US Probe Targeting Beijing's Logistic, Maritime, and Shipbuilding Industry

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