Chinese Cities Target 70% AI Chip Self-Sufficiency by 2027 with Guiyang, Huawei, 40% AI Computing Boost, State Council Support

Chinese cities and major municipalities have set a target to achieve 70% self-sufficiency in artificial intelligence (AI) chips by 2027, aiming to reduce reliance on U.S.-based Nvidia, which controlled approximately 80% of the AI chip market in early 2024. Guiyang has implemented a requirement for around 90% domestic chip usage in new data centers, while Huawei’s Ascend 910B chip delivers about 85% of the power of Nvidia’s H20 chip. This push is part of a broader national strategy to develop a fully domestic AI stack, supported by advancements such as the software-led AI development roadmap exemplified by DeepSeek v3.1. At the China Computing Power Conference, the government announced plans to increase AI computing capacity by 40% in 2025. Additionally, the Chinese State Council has issued guidelines promoting the growth of the AI chip and software ecosystem, signaling strong governmental backing for domestic AI technology development and expansion into overseas markets.