In a striking prediction, chip design expert Wei Shaojun warns that the surge of players in the AI chip development arena could lead to substantial losses.

Wei Shaojun, the leader of the integrated circuit design division at the China Semiconductor Industry Association (CSIA), has issued warnings to local firms regarding their self-sufficiency efforts in the chip industry. This year, China's chip design sector is confronting substantial losses driven by fierce competition and a rush of new entrants, as the government's push for self-sufficiency has resulted in financial strain across many segments of the industry, exacerbated by an unreasoned quest for success in a notably challenging environment. Despite navigating rough waters, China's IC design industry has managed to notch an 8% growth rate, although this figure masks the struggles many companies are facing.

According to him, China The expert emphasizes that Chinese companies need to tread carefully as they innovate, to avoid the perception that domestic alternatives to foreign technologies are subpar; achieving advances in high-end chip manufacturing remains a significant hurdle.

US Export Regulations Undermine China's Computing Advancement  chip design firms were not in good shape.

According to the latest regulations published last month, the US Bureau of Industry and Security has imposed tighter restrictions on semiconductor equipment and chips, complicating China's efforts to secure the computing power essential for developing supercomputers and AI technologies.

Wei Shaojun noted that the US restrictions will create obstacles for China as it strives to build the computational strength necessary for its supercomputer and AI advancements.

Despite enduring strict limitations imposed by the US, China has significantly progressed in its scientific and technological landscape over the previous year. advanced AI The '2022-2023 Global Computing Index' report, a collaborative effort by IDC, IEIT Systems, and the Tsinghua Institute for Global Industry, indicates a 31% increase in China's data center capabilities, reaffirming its commitment to AI advancement.

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