As the AI age comes, leading to high demand for computing power, GPU suppliers have experienced a boom. China-based GPU startups are trying to catch up and seek expansion to capitalize on the AI dividend.
Despite the global GPU market being dominated by suppliers primarily based in the US, such as Nvidia, AMD, and Intel, Chinese IC design houses, such as Hygon Information Technology, Loongsan, Montage Technology, Ingenic, Cambricon Technologies, Biren Intelligent Technology, and Moore Threads, expect a potentially huge market in China brought by import substitution.
Chinese GPU suppliers are rapidly emerging, with core team members having previous work experience at companies like Nvidia or AMD, launching 1-3 products on average. For example, Hygon commercialized its DPU deep-learning computing unit I in 2022, and Biren launched the 7nm BR100, trying to rival Nvidia's A100.
Meanwhile, China's GPU providers are looking to raise funds for expansion. Jingjia Micro recently announced that it would raise funds up to CNY4.2 billion to develop the high-performance GPGPU, which industry insiders view as a boon for GPU localization in China. Bloomberg also reported that Biren was considering an IPO in Hong Kong as soon as this year.
Jingjia Micro, which launched products including JM54000, JM7200, and JM9, is the leading GPU supplier based in China that is the first to develop China's home-grown GPU for mass application and commercialization. However, JingJia Micro's GPU products are mainly used in graphics processing and cannot fully meet the growing needs of downstream applications for image quality and computing power. DIGITIMES reported that one of the purposes of its fund-raising plan is to help it play catchup.
According to IDC data, the global GPU market reached US$25 billion in 2021 and is expected to reach US$55 billion by 2026, with a compound annual growth rate (CAGR) of 17%. This growth is primarily driven by the strong demand for HPC used for AI and deep learning.
Article translated by Jingyue Hsiao
