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China Joins Global AI Chip Race with New Factory

By Wayne Ingram
Sep 26, 2023
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China is reportedly planning to construct AI chip factories that will manufacture particle accelerators as part of its strategy to become a leader in the global semiconductor industry. These particle accelerators will play a crucial role in developing new methods for producing advanced semiconductor chips for artificial intelligence ( AI) applications.

The particle accelerators will enable the creation of high-quality light sources needed for on-site production of AI semiconductor chips. Researchers from Tsinghua University are said to be in discussions with authorities in the Xiongan New Area to identify a suitable location for establishing these factories .

This move is seen as a potential workaround for current US sanctions, as particle accelerators would replace the need for photolithography machines in the semiconductor chip manufacturing process, which is a critical step in developing advanced AI systems.

Presently, the Netherlands-based Advanced Semiconductor Materials Lithography is the sole company with this advanced machine technology. The US has imposed restrictions on the company's ability to sell its high-end machines to the Chinese market, akin to banning Nvidia, a leading AI chip manufacturer, from selling its most powerful products to China.

This isn't the first time China has sought domestic solutions to counteract sanctions. In May, reports emerged that Chinese companies were exploring ways to develop AI systems using less advanced semiconductors and different chip combinations in response to US sanctions.

Despite these sanctions, Chinese companies have continued to release new AI systems. In September, Tencent introduced its own ChatGPT competitor in the Chinese market. Meanwhile, the US has been actively enhancing its control over the AI ​​manufacturing market and is making deals focused on AI chips and technology, as it aims to reduce China's dominance in AI development. European regulators are also considering their stance on export controls and restrictions related to AI technology from China.


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