China plans to allow selected domestic firms like Alibaba and ByteDance to import limited Nvidia H200 chips, easing its tech standoff with the US. This pragmatic shift addresses China's immediate AI computing power gap, as local alternatives are insufficient.
China is reportedly planning to allow select companies, including Alibaba and ByteDance, to purchase limited quantities of advanced AI chips, such as Nvidia's products. This shift follows months of stand-off and requires companies to justify their need for foreign chips over domestic alternatives.
Chinese companies like Zelostech are shifting away from Nvidia chips due to cost and a push for tech self-sufficiency. This trend is seen across the automotive and AI sectors, with local firms developing their own semiconductors and optimizing models for homegrown hardware, impacting Nvidia's revenue in China.
Cambricon shares rose 18% to nearly 1,680 yuan on Thursday, outperforming rival Yuanjie Semiconductor Technology. The Beijing-based chip designer reported a 160% revenue jump to 2.89 billion yuan in Q1 2026, with profits soaring 185% to 1 billion yuan, driven by sustained AI computing power demand. The company overtook Kweichow Moutai in stock price last August.
Chinese optical chipmaker Yuanjie Semiconductor Technology reported an elevenfold surge in first-quarter profits as domestic firms capitalise on soaring demand for computing power amid the artificial intelligence boom and the country’s tech self-sufficiency drive. Net profit in the three months ended March 31 jumped 1,153 per cent year on year to 179 million yuan (US$26.2 million), while revenue grew 321 per cent to 355 million yuan, the Shanghai-listed company said in a stock-exchange filing on...
