China's AI chip industry shows signs of strain as two key players look like they might be in trouble
As US chip export sanctions continue to be enforced, there are signs that the Chinese AI chip industry may be feeling the strain. Two of the country's leading chip manufacturers and designers are showing signs of struggle, and as the restrictions continue to put the squeeze on China's chip manufacturing and development sector, it seems that the industry may be feeling the effects.
The CEO and co-founder of Chinese AI GPU manufacturer Biren Technology, Xu Lingjie, has recently resigned (via Tom's Hardware), while Cambricon, a leading AI chip developer considered to be a key player within the industry, has been laying off staff since last summer, with its market value said to have nearly halved since it went public in 2020.
While Cambricon's issues have been long-standing, the company was added to the US Commerce Department's «entity list» in December of last year, severely restricting its access to US chip technology and manufacturing equipment, while Biren Technology was added last October.
It's not just the AI sector that seems to be in trouble. China's economy has had a rocky start to the year, with a stock market slide that saw large percentage drops in key financial metrics and the People's Bank of China announcing large cuts to how much cash banks hold in reserve, in an attempt to boost lending and help the struggling economy recover.
Just last week the CEO of Intel, Pat Gelsinger, made comments in a conversation at the World Economic Forum in regards to the current technological gap between China and the rest of the world in regards to chip manufacture and design, stating that he believes that there is a «10-year gap» in relation to the two. He further went on to say that he believed the gap to be sustainable, thanks to the export policies that have already been put in place.
Recent comments made by the Chinese ambassador to the Netherlands, Tan Jian, in an interview with a Dutch newspaper may reveal a shift towards a stronger rhetoric in regards to the
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