China Aims to Build AI Chip Factories Despite Sanctions

Chinese Scientists Seek to Build AI Chip Factories

Chinese scientists are reportedly planning to build artificial intelligence (AI) chip factories for creating particle accelerators, in an effort to bypass sanctions that have affected the local industry. The particle accelerators will help produce a high-quality light source necessary for manufacturing AI semiconductor chips on-site.

Potential Solution to Circumvent Sanctions

The scientists from Tsinghua University are in discussions with authorities in the Xiongan New Area to select an appropriate location for the factory. This move is seen as a potential way to circumvent the current sanctions imposed by the United States.

Lithography Machines and Sanctions

The particle accelerators would replace the lithography machines used to produce high-level AI systems. Currently, the Netherlands-based company ASML is the sole owner of the technology for these machines. The U.S. has barred ASML from selling its top-end machines in China, along with restricting Nvidia, the world’s leading manufacturer of AI chips, from selling its most powerful products to China.

China's Efforts to Combat Sanctions

China has previously attempted to combat sanctions through efforts on the domestic front. Chinese companies have been studying methods to develop AI systems using weaker semiconductors and alternative chip combinations. Despite the sanctions, Chinese companies have still released new AI systems following the country's landmark AI legislation.

Tightening U.S. Grip on AI Manufacturing Market

While China pushes forward, the U.S. has been strengthening its position in the AI manufacturing market. During a recent visit to Vietnam, the U.S. made multi-billion dollar deals focused on AI chips and technology. The U.S. is concerned about China leading the way in AI development and this concern has also spread to European regulators who are considering their stance on export controls and restrictions on China.