China’s Latest Move to Boost Domestic Chips in Data Centers

China has instituted a bold move in its technology strategy by mandating that newly state-funded data center projects solely use domestically-manufactured AI chips. This directive, as reported by sources to Reuters, reflects China’s determined push towards self-sufficiency in high-end computing. In response to this guidance, data centers below 30% completion are required to remove foreign chips or halt planned purchases. Those in advanced stages will face individual scrutiny. The initiative represents a significant escalation in China’s efforts to eliminate foreign technology from its essential infrastructure. The tensions between China and the US over AI chip supply, particularly from companies like…