China's AI Chip Revolution: Huawei's Ambitious Production Plans

China aims to boost AI chip production by 2026, aiming to reduce reliance on Nvidia. Huawei plans to produce AI chips at dedicated plants, potentially outpacing current production capacities. SMIC will double its manufacturing of 7nm chips in response to demand, amidst ongoing U.S. restrictions.

China's chipmakers are strategizing to drastically increase the nation's output of artificial intelligence chips by the year 2026, in a calculated move to lessen dependence on Nvidia.

The Financial Times has reported that Huawei is set to begin operations at a dedicated plant for AI chip manufacturing by the end of this year. Two additional facilities are slated to commence operations in 2026, according to sources.

While these plants are anticipated to primarily support Huawei, no clear ownership details have emerged. Meanwhile, SMIC is preparing to double its production capacity for 7nm chips next year, catering predominantly to Huawei's demand.

(With inputs from agencies.)