SoftwareAIChina’s AI chip industry shows signs of strain as two key players look like they might be in troubleWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
SoftwareAIChina’s AI chip industry shows signs of strain as two key players look like they might be in troubleWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: Andriy Onufriyenko via Getty)
As US chip export sanctions continue to be enforced, there are signs that the Chinese AI chip industry may be feeling the strain. Two of the country’s leading chip manufacturers and designers are showing signs of struggle, and as the restrictions continue to put the squeeze on China’s chip manufacturing and development sector, it seems that the industry may be feeling the effects.
The CEO and co-founder of Chinese AI GPU manufacturer Biren Technology, Xu Lingjie, has recently resigned (viaTom’s Hardware), while Cambricon, a leading AI chip developer considered to be a key player within the industry, has been laying off staff since last summer, with itsmarket value said to have nearly halvedsince it went public in 2020.
While Cambricon’s issues have been long-standing, thecompany was addedto the US Commerce Department’s “entity list” in December of last year, severely restricting its access to US chip technology and manufacturing equipment, while Biren Technology was added last October.
It’s not just the AI sector that seems to be in trouble. China’s economy has had a rocky start to the year, with astock market slidethat saw large percentage drops in key financial metrics and the People’s Bank of China announcinglarge cutsto how much cash banks hold in reserve, in an attempt to boost lending and help the struggling economy recover.
“If the Americans treat us in a hegemonic way, we will of course react” the ambassador said. “The U.S. has stretched their idea of security far too far, including to things that have nothing to do with military risks”.
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Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.
The restrictions haven’t stopped some Chinese chip-manufacturers from attempting to get around the bans, with the US China Economic and Security review commissionfinding in a recent reportthat “importers are often able to purchase the (chip-making) equipment if they claim it is being used on an older production line”.
While these export restrictions seem to have placed a significant strain on international relations between the two countries, it seems there’s little sign of any meaningful easing of the situation anytime soon.
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