A Bloomberg Intelligence survey released on July 7 found that Chinese companies expect domestic chips to account for 46% of their AI accelerator budgets over the next 12 months.

The figure is up from 30% currently, reflecting shifts in purchasing decisions amid US-China tensions.

The survey of 60 executives in software, finance, manufacturing, and retail found 80% were over budget on infrastructure this year, mostly because AI projects were costly.

Bloomberg Intelligence said Nvidia’s market share in China could shrink as its H20 chips became harder to find and local suppliers gained ground.

Bloomberg Intelligence also pointed to a government-led plan to spend about 2 trillion yuan (US$294 billion) on data centers over the next five years, with at least 80% of core technologies such as chips coming from domestic companies.

Domestic vendors including Huawei and Hygon Information Technology, a Chinese chipmaker, may benefit.

Many respondents were also evaluating chips from Cambricon Technologies Corp., a Beijing-based AI chip designer.

But limited supplies of high-bandwidth memory, which helps AI accelerators transfer data quickly, could constrain the growth of Chinese AI chip companies.

🔗 Source: Bloomberg

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