China Aims to Increase Computing Power by 50% by 2025

China has announced its ambitious plan to boost its computing power by 50% by 2025, according to key ministries in the country. With the aim of keeping up with the United States in artificial intelligence (AI) and supercomputing applications, China plans to achieve a computing capacity equal to 300 exaflops. Currently, the country possesses a computing power of 197 exaflops. This increase in computing power will support various industries, including finance and education.

The Chinese government recognizes the importance of expanding computing power to drive economic output. According to Akshara Bassi, a senior research analyst at Counterpoint, every 1 yuan invested in computing power has historically resulted in 3-4 yuan of economic output. China’s investments align with its strategy to lead in technology prowess and integrate AI across all industries and domains.

The race for technological dominance between the U.S. and China has intensified, with semiconductors and AI becoming key battlegrounds. China aims to invest in growing its computing power, particularly in AI, as major cloud providers launch AI solutions for consumers and enterprises. To achieve this, China will focus on areas such as memory storage, data transmission networks, and the construction of more data centers. These developments are crucial for the growth of cloud computing players.

In addition to expanding computing power, China also plans to strengthen the security of its supply chain. The country has faced pressure on its technology supply chain due to export controls and sanctions imposed by the U.S. To counter these challenges, China has been enhancing its domestic industries in critical areas.

However, U.S. sanctions restricting China’s access to certain semiconductors, such as graphics processing units (GPUs) from American chip designer Nvidia, could hinder China’s ambitions to boost computing power. Access to the latest and best AI chips/GPUs remains a primary obstacle for the country’s AI data centers.

China’s determination to increase computing power reflects its commitment to technological advancement and the integration of AI across industries. As the country continues to invest in cutting-edge technologies, it aims to solidify its position as a global leader in the field of AI and supercomputing.