A chip manufacture machine Photo: VCG

Chinese companies have made marked progress in designing and producing high-performance, energy-efficient chips, as part of the nation's ongoing efforts to bolster its semiconductor sector, industry experts told the Global Times recently.

Although there has been a noticeable rise in the use of home-made chips by Chinese businesses, domestically produced AI chips still need further improvement in technology sophistication, market share, and brand recognition.

"The AI chip market is in the midst of intense competition with domestic manufacturers trying to find ways to keep up with top industry players. It is not easy for latecomers to integrate into the supply chain, but we are moving toward technological self-sufficiency," an industry representative surnamed Yang told the Global Times on Friday at the Global AI Chip Summit 2024 held in Beijing.

Lately, China has ramped up investment in home-grown AI chips. Lead companies like Huawei, Baidu, Alibaba and Tencent have accelerated efforts in AI chip research and development, while a growing number of AI chip start-ups continue to emerge.

Some of these firms are now able to design and produce chips that deliver high performance and become more power efficient -- a development that is essential for boosting the core competitiveness of China's semiconductor industry, the Global Times learned at the summit.

Chips play a vital role in handling a large number of computing tasks in various AI applications and are commonly known as AI accelerators.

The advancements made by Chinese technology companies are vital for improving the country's computational technology and reflect the expanding market for domestic AI computing chips.

Data from the World Semiconductor Trade Statistics showed that year-on-year growth of the global semiconductor market is projected to be 16 percent in 2024, with market scale estimated at $611 billion.

While leading AI chip companies like Nvidia, ADM and Intel will continue benefiting from this trend, Chinese AI chipmakers have the opportunity to narrow the gap, Yang noted.

Industry experts said that China, with its vast data resource and diverse application scenarios for AI chips, has positioned itself as a new pace-setter and an innovation hub. 

Leading Chinese startups such as Cambricon Technologies Co, Enflame Technology, and Moore Threads Technology Co, have shown impressive performance, approaching the level of their overseas counterparts and gradually closing the gap, Chinese media reported.

Chinese experts noted that the indigenous innovations by Chinese companies are starting to overcome the difficulties caused by the US' unilateral technological blockade in the past few years. And, Chinese companies are poised to continue to enhance their resilience and strengthen their research and development capability, analysts said. 

In the first half of 2024, Chinese companies spent $25 billion on semiconductor related equipment, surpassing the combined spending of the US and South Korean companies, Nikkei Asia reported last week, citing a report released by industry association SEMI.