A few days ago, it was reported that TSMC has significantly reduced the production capacity of a Chinese AI chip company. The reason is that the performance of domestic AI chips is close to that of Microchip. The US chip company NVIDIA and related capital institutions BlackRock jointly put pressure on TSMC, highlighting the concerns of the US chip company. The competitiveness of Chinese AI chips.
The domestic AI chip company is Biren Technology. It is understood that the AI chip BR100 produced by Biren Technology with a 7-nanometer process has surpassed NVIDIA's slightly lower-positioned A100 in terms of various performance parameters, and is close to NVIDIA's 5-nanometer chip H100. It highlights the rapid progress of domestic AI chips.
The data in the second quarter of this year shows that NVIDIA’s revenue and profits have doubled. The reason is that the rise of ChatGPT has allowed many companies around the world to accelerate the development of AI technology. This has led to a large-scale purchase of NVIDIA’s AI chips, resulting in high prices for A100 and H800. The price of the H800 has soared to 350,000 yuan each, driving NVIDIA's revenue and profit to double at a double rate in the second quarter.
Earlier, several domestic Internet companies reported that they placed an order for AI chips of nearly US$5 billion to NVIDIA, which made NVIDIA a lot of money, and the AI chips that Chinese Internet companies can purchase are A800 with limited performance. , H800, but due to the restrictions of the United States, Chinese Internet companies still have to purchase at high prices.
Once the BR100 of Biren Technology is mass-produced, it will have a huge impact on NVIDIA. This makes NVIDIA, which is earning a lot of money, and the US investment institutions behind it, such as BlackRock, are quite worried. It is reported that the global assets managed by these investment institutions are as high as 10 trillion US dollars, they are enough to influence the joint action of the US chip industry, which in turn prompted TSMC to make a decision to suspend the foundry for Biren Technology.
The progress of domestic AI chips has confirmed the predictions of people in the US technology industry. As early as two or three years ago, Bill Gates, the richest man in the United States, said that US restrictions could not prevent China from developing advanced chips. Over the past few years, China's chips have continued to break through gaps, and chip production capacity has continued to rise, pushing China's chip self-sufficiency rate to more than 30%.
In the second half of last year, the United States further prevented NVIDIA, AMD, etc. from supplying high-end AI chips to China. NVIDIA founder Jensen Huang said that restricting American chip companies from supplying high-end AI chips to China will only lead to huge losses for American chips. After all, there are almost no such chips in the world. Another big market that can replace the Chinese market, and this will accelerate the development of AI chips in China.
China is the world's largest chip procurement market. In 2022, China will purchase nearly 70% of the world's chips. Of course, China is also the world's largest AI chip market. NVIDIA is worried that if the United States does not supply China with high-end AI chips, this will make China's AI chips Enterprises monopolize the domestic market. As mentioned above, only a few Internet companies purchase AI chips worth as much as US$5 billion. If these chip companies hand over the revenue to China's local AI chip companies, the rich income will accelerate the development of China's AI chips.
Now Biren Technology's BR100 is approaching NVIDIA's highest-end AI chip H800 in terms of performance. The development of AI chip technology is accelerating to approach NVIDIA's technical level, so US capital once again prevented TSMC from making chips for Biren Technology, as it did before restricting TSMC from manufacturing chips for Huawei, so as to ensure that NVIDIA continues to earn huge profits from the AI chip market .
Facts have proved that the actions of the United States have stimulated the potential of China's chip industry. Today, China's chips that have reached the world's advanced level include AI chips, memory chips, 5G chips, etc., highlighting the rapid development of China's chips. The measures taken by the United States have not only failed Blocking the development of Chinese chips, but weakening the competitive advantage of American chips with the growth of Chinese chips, is completely shooting itself in the foot.