Cambricon Technologies Corp. is preparing a major production increase for 2026 as China’s artificial intelligence hardware sector accelerates efforts to replace Nvidia Corp.’s technology.
According to a Bloomberg report, the Beijing-based chip designer plans to more than triple its output next year, aiming to take market share from Huawei Technologies Co. and meet rising domestic demand following US export restrictions.
People familiar with the matter told the news publication that Cambricon is preparing to deliver around 500,000 AI accelerators in 2026.
The target includes as many as 300,000 units of the company’s most advanced Siyuan 590 and 690 chips, the report added.
The ramp-up will rely heavily on Semiconductor Manufacturing International Corp.’s latest “N+2” 7-nanometer process technology, according to the report.
China accelerates local chip development
Cambricon’s expansion underscores how aggressively Chinese semiconductor companies have moved to fill the void left by Nvidia’s forced exit from the country due to US restrictions.
Beijing has been encouraging large domestic technology companies to reduce their reliance on American hardware, accelerating investment in local chip capabilities.
Huawei, another major player in the country’s AI chip ecosystem, is preparing to double its output of advanced processors over the next year.
Meanwhile, Moore Threads Technology Co., another rising domestic contender, is scheduled to make its public debut in Shanghai on Friday, emphasising the growing number of Chinese firms vying for a share in the AI hardware market.
The market reaction mirrored that momentum. Cambricon’s shares rose 2.8% in Shanghai on Thursday, while SMIC gained 3.9% in Hong Kong and rival Hua Hong Semiconductor Ltd. climbed 3.1%.
Nvidia’s absence fuels domestic opportunity
Nvidia chief executive Jensen Huang said in November that the company is effectively blocked from selling into China, a situation he acknowledged would create openings for domestic competitors such as Huawei.
While the Trump administration is considering whether to permit sales of Nvidia’s H200 chips into the country, it remains unclear whether Chinese authorities would allow broad adoption.
Cambricon has emerged as a significant beneficiary of the restrictions.
The company reported a 14-fold revenue surge in the September quarter and has seen its market value increase ninefold since 2021.
Cambricon is positioned to win new business from major Chinese AI spenders, including Alibaba Group Holding Ltd., in coming years.
ByteDance Ltd. is currently the company’s largest customer, accounting for more than half of all orders, the people said.
Investor demand builds behind Chinese GPU start-ups
The broader environment for domestic chip providers continues to strengthen.
Both Moore Threads and MetaX — two “fabless” GPU designers — are preparing high-profile listings that reflect strong investor confidence in China’s AI chip trajectory.
Moore Threads will list on Shanghai’s Star Market after its initial public offering drew overwhelming demand, with retail subscriptions oversubscribed by 4,000 times.
The company priced shares at 114.28 yuan, the highest level for an A-share IPO this year, resulting in an allotment rate of 0.036%.
MetaX, based in Shanghai, set its IPO price at 104.66 yuan and aims to raise 4.2 billion yuan, according to regulatory filings.
Both companies are closely watched as potential challengers to Nvidia in China’s home-grown GPU sector, reflecting Beijing’s broader push for technological self-sufficiency and reduced reliance on US chipmakers.
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