Major Chinese cities have set a target to achieve at least 70% self-sufficiency in artificial intelligence (AI) chips by 2027 in an effort to reduce reliance on U.S. suppliers, particularly Nvidia. Nvidia held approximately 80% of China's AI chip market at the start of 2024. This initiative is part of a broader strategy to reshape the national AI chip supply chain and counter Nvidia's dominance. For example, Guiyang, a city with a large concentration of data centers including those of Apple, now requires about 90% of semiconductors used in new data centers to be domestically produced. Chinese domestic firms such as Huawei, Cambricon, and Biren are gaining state support and increasing their market presence. Huawei’s Ascend 910B chip reportedly delivers around 85% of the performance of Nvidia’s H20 chip. This move aligns with China's broader efforts to build up computing resources and digital infrastructure, as highlighted by recent data showing China’s substantial compute capacity, including 10.85 million mainframes and 788 EFLOPS of computing power as of June 2025. The push for AI chip self-sufficiency reflects ongoing tensions in the semiconductor industry and efforts by China to develop a more independent technology ecosystem.