China's AI Chip Market to Expand to 120.6 Billion Yuan in 2023: Industry Insights and Opportunities
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The AI chip market is a substantial 'cake.' Amid increasing global competition, China's AI chip industry is facing a pivotal period of opportunity. Data shows that by 2023, China's AI chip market will expand to 120.6 billion yuan.
With the emergence of generative AI like ChatGPT and the GPT-4 large language model that supports it, demand for AI chips continues to rise. IDC predicts that the global AI chip market will reach $72.6 billion by 2025.
AI chips, also known as AI accelerators or computing cards, are specialized modules designed to handle large-scale computational tasks in AI applications (while non-computational tasks remain the responsibility of CPUs). Currently, AI chips are primarily categorized into GPUs, FPGAs, and ASICs.
In terms of technological approaches, the first AI chips in the market include various combinations of off-the-shelf CPUs, GPUs, FPGAs, and DSPs. While new designs are being developed by companies like Intel, Google, NVIDIA, Qualcomm, and IBM, at least one CPU is required to control these systems. However, when processing parallelized streaming data, various types of coprocessors become necessary.
In-Depth Research and Opportunities in the AI Chip Industry
AI chips serve as the 'brain' of artificial intelligence. The main types of AI chips include CPUs, GPUs, FPGAs, DSPs, ASICs (specialized chips for neural network algorithms), and brain-inspired chips. ASICs are expected to replace general-purpose chips as the dominant force in AI chips in the coming years.
The downstream of the AI chip industry chain primarily consists of system integrators and application enterprises, such as AI solution providers. Key application areas include autonomous driving, smartphones, robotics, and security.
Industry Chain Structure Analysis
Chart: AI Chip Industry Chain Structure Analysis
Data source: China Research Puhua Industry Research Institute
AI chips are the core of the information industry and a key driver of the new wave of technological revolution and industrial transformation.
China's top 10 AI chip companies include Huawei HiSilicon, Unisoc, Bitmain, Alibaba Cloud, Cambricon, Horizon Robotics, Vimicro, GigaDevice, MGI Tech, and Goodix. These companies have achieved significant milestones in the AI chip sector, contributing substantially to China's AI industry development.
As a key hub for Beijing's high-tech industrial layout, Shijingshan District has actively developed specialized fields such as virtual reality, science fiction, and Internet 3.0 in recent years, laying the groundwork for AI industry growth.
Aligned with Shijingshan's industrial development goals, efforts are underway to accelerate the establishment of a general AI model industrial cluster. The aim is to achieve breakthroughs in core technologies, foster distinctive vertical applications, expand application scenarios, strengthen innovation ecosystems, and boost industrial scale, creating a regionally influential hub for general AI model development.
According to the cluster plan, by 2025, Phase 1 of the cluster—spanning 5,000 square meters—will show initial results. The goal is to attract key enterprises, deploy 3-5 leading general AI models, introduce over 10 industrial service platforms, develop 10+ industry benchmark solutions, and implement 20+ flagship application scenarios, with AI industry revenue exceeding 100 billion yuan.
Opportunities in the AI Chip Industry
China places high importance on the development of the artificial intelligence (AI) chip industry, having established a series of supportive policies to create a favorable policy environment and promote rapid industry growth. In recent years, the government has introduced multiple policies to encourage the development and innovation of the AI chip sector, including the National New Generation Artificial Intelligence Development Plan and the Notice on Several Policies to Deepen Mass Entrepreneurship and Innovation.
Data shows that in 2021, China's AI chip market reached 42.7 billion yuan, a year-on-year increase of 124%. By 2022, the market size doubled to 85 billion yuan. China Post Securities predicts that by 2023, the market will further expand to 120.6 billion yuan, indicating a critical period of opportunity for the AI chip industry in China.
In the fiercely competitive market, the ability of enterprises and investors to make timely and effective decisions is key to success. The AI Chip Industry Report by China Research Network provides a detailed analysis of the current development, competitive landscape, and market supply-demand dynamics of China's AI chip industry. It examines opportunities and challenges from the perspectives of policy, economic, social, and technological environments. Additionally, the report identifies potential market demands and opportunities, offering strategic investors and corporate leaders accurate market intelligence and decision-making support. It also serves as a valuable reference for government departments.