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China's AI chip self-sufficiency rate rises rapidly, Huawei Ascend begins to replace Nvidia
In 2021, about 90% of China's AI chips came from abroad; by 2025, that proportion will drop to below 60%, and Morgan Stanley expects it to fall to 25% by 2030. By combining old equipment with advanced packaging technology, Huawei's Ascend chips have been able to replace Nvidia hardware in some AI tasks. Although Nvidia's strongest chip is still about four times more powerful than Huawei's, and China still relies on imported equipment, complete chip self-sufficiency is no longer out of reach.
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