China AI Processor Chips Market Size and Forecast by Type, Node Type, End User Application, and Distribution Channel: 2019-2032

China AI Processor Chips Market Outlook

The China AI processor chips market is poised for significant growth, projected to reach approximately USD 8.12 billion by 2033, as per David Gomes, Manager – Semiconductor. This expansion is driven by strategic investments, technological advancements, and a national push for semiconductor self-reliance.

Huawei's Ascend series, particularly the 910B and 910C processors, exemplify China's progress in AI chip development. Despite initial production challenges, with yield rates around 20%, Huawei has reportedly improved yields to nearly 40%, making the Ascend line profitable. The company plans to produce 100,000 units of the 910C and 300,000 units of the 910B in 2025, up from 200,000 units in 2024.

Other Chinese firms are also making strides. Iluvatar CoreX has developed the TianGai-100, a 7nm GPGPU competitive with Nvidia's A100, and the Zhikai-100 for AI inference. Black Sesame Technologies focuses on AI chips for autonomous vehicles, backed by companies like Tencent and Xiaomi. Biren Technology, despite U.S. sanctions, modified its BR100 GPU to comply with export restrictions and secured significant funding for further development.

The Chinese government supports these advancements through substantial investments. The National Integrated Circuit Industry Investment Fund's Phase III, established in 2024, has a registered capital of 344 billion yuan (approximately USD 47.5 billion), focusing on large-scale manufacturing and AI semiconductor development. Additionally, the Investment Fund, introduced in January 2025 with an initial capital of 60 billion yuan (USD 8.2 billion), aims to bolster AI chip innovation.

However, challenges persist. U.S. export controls have limited access to advanced chipmaking equipment, compelling companies like SMIC to rely on less efficient deep ultraviolet (DUV) lithography instead of extreme ultraviolet (EUV) technology. This reliance increases production complexity and costs, impacting yield rates and scalability.

Despite these hurdles, China's commitment to AI chip development remains unwavering. With continued government support and industry innovation, the China AI processor chips market is expected to maintain its growth trajectory, contributing significantly to the global semiconductor landscape.

Author: David Gomes (Manager – Semiconductor)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

China AI Processor Chips Market Scope