Chinese technology giants are accelerating the use of domestically developed artificial intelligence chips as Beijing pushes for greater semiconductor self-reliance amid ongoing U.S. export restrictions.
Tencent said production of Chinese-designed graphics processing units could rise significantly this year. According to company executives, supply from manufacturers in China and nearby countries is increasing steadily.
Chinese companies are ramping up homegrown AI chips, even if Nvidia is coming back https://t.co/1nLmE8lmvj
— CNBC (@CNBC) May 14, 2026
Meanwhile, Alibaba highlighted the growing role of its in-house semiconductor division, saying its proprietary AI chips have entered scaled mass production. The company also signaled plans to expand chip-powered server and data center operations.
The push comes as Chinese firms attempt to reduce dependence on Nvidia after Washington restricted advanced chip exports to China.
However, Reuters reported that the U.S. may allow several Chinese firms, including Alibaba and Tencent, to purchase Nvidia’s H200 AI chips. U.S. Treasury Secretary Scott Bessent said he was unaware of any final approval.
Analysts said Chinese firms may eventually adopt a hybrid AI infrastructure using both domestic and American chips.
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