China Warns Companies Against Using NVIDIA and AMD Chips, Escalating Tech Self-Sufficiency Push
Beijing — China has issued a stern warning to domestic companies to avoid using processors from U.S. tech giants NVIDIA and AMD, according to a recent report. The directive, part of China’s broader strategy to reduce reliance on foreign semiconductor technology, could further strain global tech supply chains and accelerate the race for chip independence.
Details of the Warning
The Chinese government has reportedly instructed major telecom operators, cloud service providers, and state-run enterprises to phase out foreign-made chips, particularly those from NVIDIA and AMD, by 2026. This move aligns with China’s “Made in China 2025” initiative, which prioritizes domestic semiconductor development.
Industry analysts suggest that the ban could significantly impact:
- AI Development: NVIDIA’s GPUs dominate China’s AI training infrastructure.
- Data Centers: AMD’s EPYC processors are widely used in Chinese cloud computing.
- Global Trade: China accounts for ~30% of NVIDIA’s data center revenue.
China’s Semiconductor Imports vs. Domestic Production (2020-2025)
| Year | Semiconductor Imports ($B) | Domestic Production ($B) |
|---|---|---|
| 2020 | 350 | 90 |
| 2021 | 380 | 110 |
| 2022 | 320 | 140 |
| 2023 | 310 | 170 |
| 2024 | 300 | 200 |
| 2025 | 290 (est.) | 220 (est.) |
*(Source: IT-INDIA.com Research, 2025)*
Market Reactions and Alternatives
Following the news:
- NVIDIA shares fell 4.2% in pre-market trading.
- Chinese chipmakers like SMIC and Huawei’s HiSilicon saw stock surges.
- Analysts predict a 15-20% decline in U.S. chip exports to China in 2026.
Chinese firms are expected to turn to domestic alternatives such as:
- Huawei’s Ascend AI chips
- Loongson CPUs
- Biren Technology GPUs
Global Implications
The ban could:
- Disrupt global semiconductor supply chains
- Force NVIDIA/AMD to seek markets in India and Southeast Asia
- Speed up China’s 14nm and 7nm chip production capabilities
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