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China Mandates Domestic AI Chips for State-Funded Data Centers

Nov 05, 2025, 3:48 a.m. ET

China has instructed new data center projects receiving any state funding to exclusively use domestically produced artificial intelligence (AI) chips, Reuters reported, citing two sources familiar with the matter.

Regulators have reportedly ordered projects less than 30% complete to remove any installed foreign chips or cancel planned purchases. For projects further along in construction, authorities will evaluate compliance on a case-by-case basis, the sources said.

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