Illustration of the China and U.S. flag on a central processing unit.
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U.S. sanctions over the years on China’s semiconductor industry has forced Beijing to ramp up efforts to boost its domestic chip sector.
The boom of artificial intelligence and foundational models has only spurred on China’s goal of playing a leading role in the chip industry.
So far, it is American firm Nvidia with its graphics processing units, or GPUs, that has garnered the headlines, as it designs the key piece of hardware required to train up huge AI models, such as the likes seen from OpenAI that underpins ChatGPT.
While Nvidia can ship certain chips to China, Washington has shown its willingness to cut its tech rival off from the most cutting-edge semiconductors and tools needed to make them. This has renewed focus on China’s homegrown efforts to rival Nvidia and create semiconductors that can underpin the world’s second-largest economy’s own AI industry.
CNBC spoke to two analysts who identified some of the leading Chinese competitors to Nvidia.
Huawei
Huawei is one of China’s tech champions with a business that spans telecommunications infrastructure to consumer electronics and cloud computing. Its chip design unit is called HiSilicon.
The Shenzhen-headquartered company designs the Ascend series of data center processors. Huawei then sells these chips as a part of servers that go into data centers to train AI models. Its AI servers are under the brand name Atlas.
The firm’s current generation of chip is called the Ascend 910B, and the company is gearing up to launch the Ascend 910C, which could be on par with Nvidia’s H100 product, according to a Wall Street Journal report in August.
In its annual report earlier this year, Nvidia explicitly identified Huawei, among other companies, as a competitor in areas such as chips, software for AI and networking products.
“It is not just about the hardware, but about the overall ecosystem, tools for developers, and the ability to continue to evolve this ecosystem going forward as the technology advances. Here, Huawei holds a lot of advantages, and is attempting to build a software ecosystem around its Ascend series of datacenter processors,” Paul Triolo, an associate partner at consulting firm Albright Stonebridge, told CNBC.
Alibaba and Baidu
Alibaba and Baidu both buy Nvidia chips but they are also designing their own semiconductors for AI processes.
Baidu, one of China’s biggest internet companies, designs its own chips for the use in servers and autonomous cars under the brand name Kunlun.
Alibaba’s semiconductor design unit called T-Head, has developed an AI inference chip called the Hanguang 800. Inference is the process that follows the training of AI models, as it refers to the actual application of AI in the real world, such as a chatbot responding to user queries.
“Alibaba’s AI inference chip has already been deployed to accelerate its recommendation system on its e-commerce platform. Baidu has integrated its Kunlun chip into its data centers and autonomous driving sector,” Wei Sun, a senior analyst at Counterpoint Research, told CNBC.
Biren Technology
Like Nvidia, Biren Technology designs a general purpose GPU and has a software development platform to build applications on top of the hardware.
These chips form part of Biren’s Bili series of products designed to be used in data centers for AI training.
Last year Biren was added to a U.S. blacklist known as the Entity List, which restricts its access to certain American technology.
Cambricon Technologies
Cambricon Technologies designs various types of semiconductors from those designed to train AI models to those that can run AI applications on devices, rather than in data centers.
However, the company has continued to report significant losses and reportedly laid off workers last year, according to the South China Morning Post.
Cambricon Technologies is also on the U.S. Entity List.
Moore Threads
Moore Threads, founded in 2020, is developing GPUs designed to train large AI models.
MTT KUAE is the company’s data center product containing its GPUs. The company’s mission is to become a “global GPU leader,” according to a statement on its website.
It also has big brand names backing it. TikTok-owner ByteDance is an investor alongside big venture capital firms including Sequoia and GGV Capital.
Moore Threads is also on the U.S. Entity List.
Enflame Technology
Enflame Technology is another start-up in China vying to position itself as a homegrown alternative to Nvidia. The company designs chips for data centers focused on AI training and processes.
Tencent, one of China’s biggest tech companies, is an investor in Enflame.
Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.
“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.
Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.
“These two models could face shipping momentum challenges unless their design is modified,” he wrote.
Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.
There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”
Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.
Apple did not immediately respond to CNBC’s request for comment.
Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.
In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.
“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.
Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.
In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.
Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”
Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.
The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.
Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”
Read the full memo from Amazon’s Castleberry:
Team,
As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.
As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.
In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.
This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.
We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.
New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.
M. Scott Brauer | Bloomberg | Getty Images
Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.
“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.
The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.
In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.
Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.
Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.
Tesla did not immediately respond to CNBC’s request for comment.