China Targets Triple AI Chip Output by 2026 to Cut Nvidia Dependence

China’s domestic chipmakers are accelerating efforts to triple the country’s production of artificial intelligence chips by 2026, aiming to significantly reduce reliance on foreign technology, particularly Nvidia, according to a report by the Financial Times. The push comes amid ongoing U.S. export restrictions that have limited China’s access to advanced semiconductors and AI hardware. In response, Chinese companies are investing heavily in research, development, and manufacturing capacity to build a self-sufficient AI chip ecosystem. Major players including Huawei, Alibaba, and Baidu are expanding their in-house chip design capabilities, while state-backed foundries are ramping up production of specialized AI accelerators. The goal is not only to meet domestic demand but also to strengthen China’s position in the global AI race. Industry analysts note that while current Chinese chips still lag behind Nvidia’s latest models in performance and efficiency, rapid progress is being made in areas like inference and cloud-based AI workloads. The government’s support through funding, policy incentives, and national tech initiatives is fueling this strategic shift. If successful, the expansion could reshape the global semiconductor landscape and challenge Nvidia’s dominant market position in the long term.