Alibaba Group Holding and Baidu are developing semiconductors crucial for artificial intelligence. This progress drives investor excitement for China’s AI chip technology, notably following developments related to Huawei’s advanced processor.
However, analysis suggests a challenging reality exists beneath this excitement. Chinese AI chip designers face significant hurdles, primarily dependence on foreign technology and manufacturing processes. These dependencies stem directly from US-led restrictions.
This situation creates a considerable supply deficit. Furthermore, designers struggle to compete with global leaders, specifically Nvidia. These factors cast a shadow on the long-term viability of the country's current AI euphoria.