China reportedly plans to publish policy to bolster use of open source chips nationwide

This will involve the use of open-source RISC-V chips, which are slightly less sophisticated but still used for smartphones and computer processes for AI servers. That as compared to the more commonly used x86 chips from Intel and AMD.

The report says that China is planning to issue guidance to encourage the use of the RISC-V chips across the nation. The guidance is aimed at boosting the use of said chips and could be released later this month, though subject to change.

All of this will mean trying to push for more cost effective alternatives for Chinese AI models especially. That after seeing what has transpired with DeepSeek, running those models efficiently on less powerful and cheaper chips.

If anything, it’s a sign of further divergence in technology between the US and China as well. The biggest gainer from this announcement is Alibaba’s XuanTie arm, who is selling commercial RISC-V processors to chip designers.

This article was written by Justin Low at www.forexlive.com.