China is accelerating the establishment of its artificial intelligence chip ecosystem as U.S. restrictions take effect. Here is the current status of its supply chain:

Key Points

• U.S.-led export controls have excluded China from key segments of the AI chip supply chain.
• Many chip experts say this has had a dual effect: on one hand, it has spurred the emergence of domestic alternatives in China, while on the other hand, it has posed challenges to these efforts..
• In certain areas, such as memory, China has made significant progress in overcoming restrictions, while in chip manufacturing equipment, the barriers are much greater.

Due to U.S. restrictions on China’s purchase of advanced semiconductors for AI development, Beijing is pinning its hopes on domestic alternatives like Huawei.

This task has become more difficult as U.S. restrictions not only hinder China’s access to the world’s most advanced chips but also limit access to key technologies needed to create an AI chip ecosystem.

These restrictions cover the entire semiconductor value chain, from design and manufacturing equipment used to produce AI chips to supporting elements like memory chips.

Beijing has mobilized billions of dollars in an attempt to fill these gaps, but experts say, despite being able to make