China aims to triple AI chip output, reduce Nvidia's dependency

BEIJING, Aug 27 (Reuters): China's chipmakers are seeking to triple the country's output of artificial intelligence chips in 2026, rushing to reduce dependence on Nvidia, the Financial Times reported on Wednesday.

Huawei aims to begin production at a plant dedicated to making AI chips by year end, with two more facilities set to launch in 2026, the newspaper said citing people familiar with the matter.

The plants are designed to specifically support Huawei, but their ownership remains unclear. Huawei told the FT that it did not have plans for its own plants.

The combined output from the three potential plants could surpass the current production capacity of similar lines at China's top chipmaker, Semiconductor Manufacturing International Corporation (SMIC), the FT said.