TL;DR:
- China is reducing reliance on foreign AI chips due to US export controls, boosting its domestic AI chip industry.
- Key players like Huawei, Moore Threads, Cambrian, and Stream Computing are set to ship 1.34 million AI chip units in 2023, up 22.5% from the previous year.
- Challenges remain in integrating various AI chips, but experts see the potential for local chip adoption in data centers.
- China’s AI server market is expected to grow by 82.5% in 2023, reaching US$9.1 billion yuan, with a projected value of US$13.4 billion yuan by 2027.
- The global AI server market is also on the rise, with servers capable of AI-generated content expected to represent 31.7% of all servers by 2026.
Main AI News:
In the ever-evolving landscape of artificial intelligence (AI), China is strategically positioning itself to rely less on foreign AI chips and focus on fostering its domestic AI chip industry. This shift comes in response to the United States’ stringent chip export controls, which have restricted China’s access to advanced Nvidia chips.
China boasts a burgeoning AI chip manufacturing sector, with key players such as Huawei Technologies, Moore Threads, Cambrian, and Stream Computing making significant contributions. According to the International Data Corporation (IDC), these companies are poised to ship a total of 1.34 million AI chip units in 2023, reflecting a remarkable 22.5% increase from the previous year.
Despite this promising growth, industry experts assert that China has substantial groundwork to cover before its AI chips can gain widespread adoption. Lin Yonghua, Vice President and Chief Engineer at the Beijing Academy of Artificial Intelligence, emphasizes the need to develop technology frameworks that allow servers to seamlessly integrate various AI chips concurrently. This forward-thinking approach holds the potential to address China’s persistent AI chip shortages and pave the way for more widespread adoption of local AI chips within the nation’s data centers.
Rapid Expansion in China’s AI Server Market
The growth trajectory of China’s AI server market is nothing short of impressive. According to a joint report by IDC and Inspur Electronic Information Industry Co Ltd, the market is set to surge by a remarkable 82.5% in 2023, reaching a total value of US$9.1 billion yuan. This remarkable ascent is expected to continue, with projections indicating that the market will expand to US$13.4 billion yuan by 2027, representing a 47% increase from 2023 levels.
One of the key distinguishing factors is the exponential growth in China’s AI computing power, with a projected compound annual growth rate of 33.9% from 2022 to 2027. In comparison, the annual growth rate for traditional computing power stands at a more modest 16.6%. These figures underscore the pivotal role that AI is playing in shaping China’s technology landscape.
Global Expansion of AI Server Markets
The global AI server market is also on an upward trajectory, with IDC forecasting substantial growth from US$19.5 billion in 2022 to an impressive US$34.7 billion by 2026. Notably, servers capable of generating AI-generated content (AIGC), encompassing texts, images, songs, and videos, are expected to represent 31.7% of all servers by 2026, a substantial increase from the current 11.9%.
Conclusion:
China’s strategic shift toward self-reliance in AI chips, coupled with the robust growth of its AI server market, signifies a significant transformation in the global technology landscape. As China continues to nurture its domestic AI chip industry, it will likely have a substantial impact on the broader AI market, driving innovation and competition.
