Chinese companies are reluctant to turn to domestic chips
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Chinese do not prefer their own chips
According to DigiTimes, one of the main reasons for the lack of adoption of Chinese-designed chips is the lack of cutting-edge technology due to limitations in advanced chip production. Reliable and proven solutions offered by globally recognized companies based in Europe, Japan or Taiwan are preferred over Chinese alternatives. In addition, domestically produced chips in low volume production and the lack of mandatory government regulations reinforce this trend.
In the AI and HPC sectors, the situation is even more complex. While US sanctions limit access to Nvidia’s most advanced solutions such as the H100 and H200, domestic alternatives defective software It’s largely unable to compete even with Nvidia’s trimmed-down HGX H20 chips. With the use of such products, companies Worried about losing competitive advantage. As a result, some companies try to meet their needs through alternative supply methods (e.g. smuggling). In fact, Chinese cloud service providers are renting data centers overseas to circumvent sanctions.
In automotive chips, the superiority of American and European-based giants such as Bosch and NXP in terms of expertise and reliability poses a major obstacle to Chinese manufacturers. The economy of scale advantages of these global players make it difficult for China to compete with domestic production.
On the other hand, efforts to turn to domestic manufacturers have been noted in some areas, especially in display driver ICs (DDIC). However, according to the report, the scale of adoption remains limited and the pace of acceleration There will be no major changes in the near future points out. The report suggests that the situation will not change without significant government intervention or significant improvements in domestic semiconductor technology.
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