By Arjun Kharpal
Publication Date: 2026-05-14 11:05:00
China is focusing on large language models in the artificial intelligence space.
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Production of Chinese chips could ramp up this year, as executives at the country’s biggest tech companies look to deploy more homegrown technology — as it’s reported U.S. chip giant Nvidia could return.
On Wednesday, internet titan Tencent suggested that production of Chinese homegrown chips could ramp up this year, while e-commerce giant Alibaba discussed how it is expanding its self-developed semiconductor usage.
The comments underscore how, in the absence of Nvidia’s technology due to export restrictions, China has pushed its domestically developed chips in the search for self-sufficiency to power its AI ambitions.
China chip ramp
Tencent Chief Strategy Officer James Mitchell said the company will have a “substantial increase” in capital expenditure, especially in the second half of the year, as more China-designed chips become “available to us month by month.”
Mitchell also said that the supply of China-designed graphics processing units (GPUs) would “progressively” ramp up through the year.
He also said that China-designed chips were seeing more supply from manufacturing facilities within China as well as “neighbouring countries.”
China has a swathe of local chip players that have ramped up activity by going public and launching products. Moore Threads, MetaX and Huawei are among the players trying to fill the void left by Nvidia since it was blocked from…
