China is considering an additional $70 billion in investment for its domestic chip industry, as reported by Bloomberg. This would be on top of existing government investment initiatives like the Big Fund III from earlier this year, and could accelerate chip fabrication design and development to help it compete with the likes of Nvidia, even as the Trump administrative re-approves sale of H200 GPUs in the region.
Over the past year, China has announced a number of major projects and initiatives in an attempt to bolster its own domestic chip supply, reduce reliance on mercurial U.S. supplies, and fix its share of the global chip shortage. Some of these have encouraged domestic chip production, while others were designed to discourage the use of hardware from international sources. Smuggling efforts are still rampant, however, and with Chinese chip designs several years and generations behind the best Nvidia and AMD have to offer, China still has a long way to go before it can replace these external sources.
