China’s semiconductor companies are aiming to expand their artificial intelligence chip output threefold in 2026, in an effort to lessen dependence on Nvidia (NASDAQ:NVDA), according to a report by the Financial Times on Wednesday.
The report noted that Huawei intends to begin production at a dedicated AI chip facility by the end of 2025, with two additional sites scheduled to come online in 2026, citing sources familiar with the plans.
These three factories are primarily intended to support Huawei’s AI chip requirements, although their precise ownership arrangements are not yet clear. When approached by the Financial Times, Huawei stated it does not plan to operate its own standalone manufacturing plants.
Once operational, the total output from the three facilities would surpass the current production levels of comparable lines at Semiconductor Manufacturing International Corporation (SMIC), China’s top chipmaker, according to the report.
The Financial Times also indicated that SMIC plans to double its production capacity for 7-nanometer chips in the coming year, with Huawei expected to remain its largest customer for these advanced chips.
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