The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, according to Reuters sources. Meanwhile VW have just announced that they will be producing chips in China for their local autonomous vehicles.
These are more indicators of the gradual decoupling between China and the rest of the world when it comes to technology. In part it is driven by China’s drive for self-sufficiency, but it also represents the escalating lack of trust when it comes to the potential national security implications of imported technologies such as semiconductors.
For VW, it will also be interesting to see if this move helps them be more competitive in a market that they have been seeing rapid declines in, or if it is just an attempt at holding on to the market share they have.