Chinese AI Chipmakers Leverage DeepSeek to Challenge U.S. Dominance
The emergence of DeepSeek’s AI models is transforming China’s artificial intelligence sector, particularly for chipmakers like Huawei, Hygon, and Tencent-backed EnFlame.
With Nvidia dominating the global AI chip market, Chinese manufacturers have struggled to develop competitive high-performance AI training chips. However, DeepSeek’s focus on AI inference is providing an alternative route—optimizing efficiency over raw computational power.
Huawei and Other Chipmakers Align with DeepSeek
In recent weeks, several Chinese AI semiconductor firms have announced compatibility with DeepSeek’s AI models, including:
Huawei
Hygon
Tsingmicro
Moore Threads
EnFlame (backed by Tencent)
While these companies have expressed support, they have not yet provided detailed technical information on their collaborations. Huawei has declined to comment, and other firms have remained silent on the specifics.
DeepSeek’s Open-Source Model: A Path to Wider AI Adoption
DeepSeek’s affordability and accessibility are expected to accelerate AI development and deployment across China. Industry experts highlight the following benefits:
- Reduces reliance on expensive, high-end AI chips
- Encourages AI adoption in key industries like automotive, telecom, and finance
- Provides an alternative amid U.S. export bans on top-tier AI chips
Inference vs. Training: Where Chinese AI Chips Excel
China’s AI chipmakers have long lagged behind Nvidia in AI training, which requires immense processing power. However, in AI inference, efficiency matters more than sheer speed—a factor where Chinese chips are gaining traction.
According to Lian Jye Su, chief analyst at Omdia, inference tasks are more localized and industry-specific, making them an area where Chinese AI chipsets can succeed.
DeepSeek’s rising influence could significantly boost China’s AI self-sufficiency, providing domestic chipmakers with a competitive edge in an increasingly AI-driven world.
