- China plans a massive AI computing grid backed by domestic chips
- High-bandwidth memory shortages restrict advanced AI accelerator production in China
- Domestic chipmakers still lag behind global leaders by several years
China is drafting a plan which could direct roughly 2 trillion yuan (about $295 billion) toward a nationwide AI computing network.
The proposal would connect data centers across the country into a unified computing grid operated largely by state-backed telecommunications companies.
Officials reportedly want at least 80% of the underlying technology, including AI chips and related infrastructure, to come from Chinese suppliers.
A massive buildout centered on local technology
The blueprint is being developed by the National Development and Reform Commission, while major carriers including China Mobile and China Telecom would oversee the operation.
According to reports, the network would be linked into a single national computing platform by 2028 through extensive infrastructure deployment.
Financing would rely heavily on sovereign borrowing and ultra-long government bonds, while associated power grid upgrades could increase costs substantially.
The total capital requirement could rise beyond 5 trillion yuan (about $738 billion) when energy infrastructure is included in broader estimates tied to the rollout.
The plan arrives as Beijing continues tightening restrictions on foreign semiconductor products used in data centers and AI facilities.
In 2025, authorities introduced requirements that data centers obtain at least 50% of their chips from domestic manufacturers – and by November that year, state-funded projects reportedly faced additional restrictions that excluded foreign accelerators from facilities still under construction.
Officials also pushed compliance…
