… But it highlights how U.S. sanctions are pushing China to develop its own chips, which in turn attract other controversial states. That potentially allows China to extend its reach across an entire parallel supply chain. …
… Even if the U.S. midterms later this year help leash some of the more turbulent aspects of the Trump administration, they won’t end American ambitions to pull control of the global chip and AI supply chains away from China, and tuck it into Washington’s own catalogue of control. …
… Highly limited domestic HBM supply constrains how many Ascend-class accelerators Huawei can assemble. Huawei alone shipped around 812,000 chips last year and projects some $12 billion in processor revenue for 2026, a pace that its own supply chain has struggled to sustain. …
… DFSX Is Working on China's First DF1000 AI Accelerator With 3D DRAM Technology, Also Unveils 3.5D+ Packaging DFSX recently hosted a presentation where they announced China's first 3D AI chip that is built entirely using China's domestic supply chain. …
… And about a month ahead of Trump’s meeting with China’s president, Xi Jinping, Huang told the US think tank the Special Competitive Studies Project that Trump’s export curbs blocking its chips from China have “already largely backfired.” “Conceding an entire market the size of China probably don’t … …
… With a crucial U.S.-China summit looming in September, the AI supply chain is being weaponized, once again, for global trade and supply negotiations, turning Silicon Photonics into a bargaining chip. …
… Additionally, while NVIDIA has designed China-specific chips to comply with the sanctions, the Chinese government is restricting local companies from buying NVIDIA's special chips in order to stimulate domestic chip production. …
… Related Story Micron Warns Memory Crunch Will Outlast 2026 as AI Demand Outpaces What HBM, DRAM and NAND Can Supply Currently, the situation has prompted China's AI chipmakers to double down on production and fill in the gaps created by NVIDIA's departure in a significant way. …
… Renting is no cheaper, with an FT survey finding that GPU rates inside China now match or exceed U.S. prices, reversing the discount that the abundant smuggled supply once provided. …
… Related Story SuperMicro Allegedly Smuggled $2.5B in NVIDIA Chips to China With Fake Servers, and Somehow Thought Nobody Was Watching The strict payment requirements underscore the delicate balancing act Nvidia faces as it attempts to capitalise on surging Chinese demand while navigating regulatory… …