China Bans Foreign AI Chips from State-Funded Data Centers, Offers Power Subsidies for Domestic Alternatives
19 Sources
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China bans foreign AI chips from state-funded data centers, report claims -- crackdown would include removing Nvidia, AMD, and Intel chips from builds in early stages
Projects using government funds must now deploy only domestic accelerators. China has reportedly issued a sweeping ban on foreign AI chips in any data center backed by government money, according to a report by Reuters. The move applies retroactively to builds still in early stages, meaning
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China offers tech giants cheap power to boost domestic AI chips
China has increased subsidies that cut energy bills by up to half for some of the country's largest data centres, as Beijing steps up efforts to boost its domestic chips industry and compete with the US. Local governments have beefed up incentives to help Chinese tech giants such as ByteDance,
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Chinese provinces offer steep power discounts to AI companies using China-made chips -- country continues its aggressive push towards AI independence and homegrown silicon
The war for AI dominance just got a new front of sorts. According to a new report, some Chinese provinces are now offering steep discounts on industrial power pricing to AI datacenters, with only one catch: they have to use homemade chips rather than Nvidia's or AMD's. According to a Financial
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China bans Nvidia, AMD, and Intel AI chips from state-funded data centers, orders removal from new builds
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? China's push for companies to use home-grown AI chips has taken a surprising turn. According to reports, Beijing now mandates that any new data center projects that receive
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Raising a digital digit to Nvidia, China reportedly set to ban foreign-made AI chips from state-funded data centers
Nvidia's hopes of returning to the Chinese market continue to dwindle. New data centre projects in China must use homegrown AI hardware going forward. According to Reuters, new government guidance will soon be passed down, apparently requiring state-funded data centres to only use AI chips
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Exclusive-China Bans Foreign AI Chips From State-Funded Data Centres, Sources Say
(Reuters) -The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered
[7]
US to block Nvidia's sale of scaled-down AI chips to China, The Information reports - The Economic Times
The White House has informed other federal agencies that it will not permit Nvidia to sell its latest scaled-down AI chips to China, The Information reported on Thursday, citing three people familiar with the matter. Nvidia has provided samples of the chip to several of its Chinese customers,
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Trump Administration Plans To Bar Nvidia From Selling Modified AI Chips To China Just Days After Jensen Huang Said Beijing Will Win AI Race: Report - NVIDIA (NASDAQ:NVDA)
The Donald Trump administration has reportedly decided to block Nvidia Corp.'s (NASDAQ:NVDA) sale of its latest scaled-down AI chip to China, tightening export restrictions just days after CEO Jensen Huang warned that Beijing could surpass the U.S. in the global artificial intelligence race. US
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China Is Actually Subsidizing Electricity to Cover Up the 'Terrible' Power Efficiency of Domestic AI Chips, Slashing Data Center Bills by Up to 50%
China is reportedly providing energy incentives to domestic CSPs to keep them attracted to the 'power hungry' AI chips from Huawei and Cambricon. Well, after voting "100% no" to NVIDIA's AI chips, it seems like the Chinese AI industry is currently reliant on domestic solutions being offered, which
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China bans foreign AI chips from state-funded data centres
China has ordered state-funded data centres to use only locally made AI chips, forcing those under 30% complete to remove foreign processors like Nvidia's. The move boosts domestic firms such as Huawei but threatens foreign chipmakers' revenues, underscoring China's push for AI self-reliance amid
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Chinese government bans use of foreign AI chips in state-funded data centers
China has issued guidance to new data center projects that have received any state funds to only use locally made AI chips, Reuters reported, citing people with knowledge of the matter. Shares of Advanced Micro Devices (AMD) fell about China's mandate is likely to reduce Nvidia and AMD sales as
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China Reportedly Bans Foreign AI Chips In State-Funded Data Centers In A Blow To Nvidia, AMD - Alibaba Gr Hldgs (NYSE:BABA), Advanced Micro Devices (NASDAQ:AMD)
Beijing has reportedly issued a directive banning foreign artificial intelligence (AI) chips in state-funded data centers amid an intensifying U.S.-China tech war. State Projects Under 30% Completion In Focus China's government has mandated that new data center projects receiving state funding
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China offers tech giants cheap power to boost domestic AI chips, FT reports
China has increased subsidies that cut energy bills by up to half for some of the country's largest data centres. Local governments have beefed up incentives to help Chinese tech giants such as ByteDance, Alibaba and Tencent , which have been hit with higher electricity costs following Beijing's
[14]
China Cuts Data Center Energy Costs By 50% With Major Subsidies To Boost Domestic Chip Industry: Report - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)
China has boosted subsidies for major data centers, slashing their energy bills by up to 50% to support domestic chipmakers and strengthen global competitiveness, according to a report. Chinese Tech Giants Grapple With High Energy Costs Several local governments in provinces with a high
[15]
White House Slams Brakes on NVIDIA's AI Chip Sales to China
US Blocks Nvidia's B30A AI Chip Exports to China Amid Rising Tech Tensions The White House has informed other federal agencies that NVIDIA will not be allowed to sell its most advanced AI chip, the B30A, to Chinese customers. The move marks a major escalation in the US-China tech rivalry. The
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US to block Nvidia from selling scaled-back AI chips to China- The Information By Investing.com
Investing.com-- The Donald Trump administration plans to block NVIDIA Corporation (NASDAQ:NVDA) from selling even its less powerful artificial intelligence chips to China, The Information reported on Thursday, citing three people familiar with the matter. The White House has informed federal
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Chinese chipmakers jump on report of foreign AI chip restrictions By Investing.com
Investing.com-- Shares of Chinese chipmakers rose sharply on Thursday after a Reuters report said Beijing plans to ban the use of foreign-made artificial intelligence chips in state-funded data centres. The guidance, according to the report, directs new government-backed data centre projects to
[18]
US to block Nvidia's sale of scaled-down AI chips to China, The Information reports
(Reuters) -The White House has informed other federal agencies that it will not permit Nvidia to sell its latest scaled-down AI chips to China, The Information reported on Thursday, citing three people familiar with the matter. Nvidia has provided samples of the chip to several of its Chinese
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Exclusive - China bans foreign AI chips from state-funded data centres, sources say
(Reuters) - The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered
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China has issued sweeping restrictions on foreign AI chips in government-funded data centers while simultaneously offering substantial power subsidies to incentivize the use of domestic semiconductors. The move represents a significant escalation in the country's push for technological independence from U.S. chip manufacturers.
China Implements Comprehensive Ban on Foreign AI Chips
China has issued sweeping new restrictions on foreign AI accelerators in government-funded data centers, marking a significant escalation in the country's push for technological independence from U.S. semiconductor manufacturers. According to multiple reports, the directive requires all state-backed data center projects to use only domestically produced AI chips going forward
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Source: Seeking Alpha
The new guidance applies retroactively to construction projects that are less than 30% complete, meaning accelerators from Nvidia, AMD, and Intel may need to be removed or replaced if already installed. Projects at more advanced stages will be assessed on a case-by-case basis, though the directive effectively eliminates prospects for foreign chip manufacturers in China's government-backed AI infrastructure
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.Power Subsidies Incentivize Domestic Chip Adoption
To offset the performance disadvantages of domestic semiconductors, Chinese provinces are offering substantial electricity subsidies to data centers using homegrown chips. Local governments in Gansu, Guizhou, and Inner Mongolia are providing discounts of up to 50% on industrial power pricing, bringing costs down to approximately 0.4 yuan (5.6 cents) per kilowatt-hour
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Source: Wccftech
These subsidies address a critical weakness in China's domestic chip ecosystem. Current-generation Chinese AI accelerators require 30 to 50% more electricity to generate the same computational output as Nvidia's H20 chips, according to industry experts. The energy efficiency gap becomes even more pronounced when compared to Nvidia's newer Blackwell architecture, which remains subject to U.S. export controls
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.Impact on Major Tech Companies and Market Dynamics
The directive affects China's largest technology companies, including ByteDance, Alibaba, and Tencent, which have complained to regulators about increased operational costs associated with domestic semiconductors. Some companies had received cash incentives substantial enough to cover a data center's operating costs for approximately one year, demonstrating the government's commitment to supporting the transition
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Source: FT
For Nvidia, which once commanded over 90% of China's AI accelerator market, the restrictions represent a devastating blow to its Chinese operations. CEO Jensen Huang recently acknowledged that the company's market share in China has "effectively plummeted to zero"
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. The ban encompasses even Nvidia's H20 chips, which were specifically designed to comply with U.S. export restrictions.Related Stories
Strategic Implications and Domestic Chip Development
China has invested more than $100 billion in AI infrastructure projects over the past two years, giving Beijing's directive significant leverage over the market. The policy represents a formal shift from earlier approaches that merely discouraged foreign chip purchases to an outright prohibition backed by financial penalties
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.Domestic alternatives include chips from Huawei, Cambricon, and Enflame, with Huawei's Ascend line considered the most mature option. However, Chinese chipmakers continue to lag behind their U.S. counterparts in software tooling and performance density. Huawei has attempted to compensate for weaker single-chip performance by combining multiple processors into larger clusters, though this approach increases operational electricity costs
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