China is set to release new guidance aimed at promoting the use of open-source RISC-V chips nationwide, a move that signals the country’s growing efforts to reduce its reliance on Western technology. The policy, which could be unveiled as early as this month, is being developed by several government bodies, including the Cyberspace Administration of China and the Ministry of Industry and Information Technology. The final release date remains uncertain as discussions continue.
RISC-V, an open-source chip design technology, has gained popularity in China, particularly among state entities and research institutes, due to its lower cost and geopolitical neutrality. It is seen as a viable alternative to more established, proprietary chip architectures, such as those from Intel and AMD, and is gaining traction in various industries, including AI and mobile technology. This shift has raised concerns in the United States, where lawmakers are wary that China may be leveraging RISC-V’s open-source nature to boost its semiconductor sector.
The growing adoption of RISC-V has sparked a positive movement in the Chinese stock market, with shares of local chip design firms such as VeriSilicon and ASR Microelectronics experiencing significant gains. Industry leaders point out that RISC-V’s potential to reduce costs for smaller companies looking to implement AI, particularly with the rise of technologies like DeepSeek, could further drive its adoption.
As tensions between the US and China over technology intensify, the development of China’s semiconductor industry using RISC-V may become a critical aspect of its strategy to become less dependent on foreign chipmakers, while also advancing its own technological ambitions.
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DeepSeek’s progress is a clear sign of the growing influence of Chinese companies in the AI sector, according to a spokesperson for China’s parliament. Lou Qinjian, speaking to reporters on Tuesday, praised the achievements of DeepSeek’s young team, describing their work as ‘commendable’.
He highlighted the company’s open-source approach and its efforts to spread AI technology globally, contributing ‘Chinese wisdom’ to the world.
The AI startup has been widely celebrated in China, particularly for rolling out AI models that offer a significantly lower cost than those developed by US rivals like OpenAI.
While some countries, including South Korea and Italy, have removed DeepSeek’s chatbot from their app stores over privacy concerns, it has been embraced within China, where local governments and tech firms are integrating it into their systems.
Based in Hangzhou, DeepSeek is rapidly advancing its next-generation model, set to succeed its R1 release from January, as it continues to make waves in the global tech sector.
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Chinese AI startup Zhipu AI has raised over 1 billion yuan ($137.22 million) in new funding, following a previous 3 billion yuan investment in December. The latest funding round comes amid growing competition in China’s AI sector, particularly with rival DeepSeek’s large language models, which claim to rival Western models at a lower cost.
Investors in the new round include the state-backed Hangzhou City Investment Group Industrial Fund and Shangcheng Capital. Zhipu AI plans to use the funds to enhance its GLM language model and expand its AI ecosystem, with a focus on businesses in Zhejiang province and the Yangtze River Delta region.
Founded in 2019, Zhipu AI has completed 16 funding rounds and is considered one of China’s leading AI startups. The company aims to release a range of new AI models, including foundation and multimodal models, as part of its open-source strategy. The funding comes as competitors like DeepSeek continue to disrupt the AI landscape with open-source models that challenge established platforms.
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Singapore‘s government is investigating a fraud case involving servers supplied by US companies, potentially containing Nvidia’s advanced chips. Three men, including a Chinese national, were charged last week in connection with the alleged illegal transfer of these AI chips from Singapore to Chinese firm DeepSeek. Singapore’s Home Affairs and Law Minister K Shanmugam confirmed that the servers were provided by Dell Technologies and Super Micro Computer to local firms before being sent to Malaysia.
Authorities are still unsure whether Malaysia was the final destination, but they are working with US officials to determine if the servers contained restricted US export-controlled items. The US is already investigating whether DeepSeek has used banned Nvidia chips, which could lead to violations of export laws. The case forms part of a broader probe into suspected smuggling activities linked to AI chips being moved from countries like Singapore to China.
Singapore, a key market for Nvidia, is also examining allegations that DeepSeek may have acquired thousands of advanced Nvidia chips illegally. However, DeepSeek has denied these claims, stating that it only used legally purchased chips, including the Nvidia H800 model. The investigation is ongoing, with Singapore continuing to cooperate with US authorities.
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Chinese smartphone maker Honor plans to invest $10 billion over the next five years to develop AI for its devices as it prepares for a public listing. CEO James Li revealed at the Mobile World Congress in Barcelona that the company aims to expand beyond smartphones into AI-powered PCs, tablets, and wearables.
Honor’s push into AI comes after completing a shareholder restructuring in December, bringing it closer to an initial public offering, though no timeline has been set. The announcement also aligns with a surge in AI investment in China, driven by the popularity of DeepSeek’s affordable language models.
While Honor’s market share in China slipped from second to fourth place last year, it has gained significant support from the Shenzhen government, including R&D funding and tax breaks. The company is also focusing on expanding internationally as it strengthens its AI capabilities.
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Senator Elizabeth Warren has called for tougher restrictions on Chinese technology, urging President Donald Trump’s nominee for a key trade role to reinforce AI chip controls.
In a letter to Jeffrey Kessler, the nominee for the Commerce Department’s Bureau of Industry and Security, Warren cited concerns over Chinese startup DeepSeek and its AI advancements. She argued for tighter enforcement of export restrictions and measures to curb chip smuggling.
Chinese firms like Huawei and SMIC, already on the US Entity List, continue to acquire American technology through front companies, Warren warned.
She pressed Kessler to address this issue and determine whether these companies violated US laws by producing advanced chips using American technology. Strengthened controls on ChangXin Memory Technology and high-powered inference chips, such as Nvidia’s H20, were also among her recommendations.
Kessler, who previously served as the Commerce Department’s top trade enforcement official, acknowledged China‘s progress in cutting-edge technology. His confirmation hearing before the Senate Banking Committee is set to examine how the US can maintain its technological edge while enforcing export restrictions effectively.
The debate comes amid ongoing tensions over AI and semiconductor technology between Washington and Beijing.
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Chinese technology startups are scrambling for fresh funding to capitalise on the growing excitement around AI, fueled by DeepSeek‘s AI breakthrough and President Xi Jinping’s recent support for private enterprises. Companies such as AI-powered optics startup Rid Vision, brain-computer interface firm AI CARE Medical, and robotics maker Shanghai Qingbao Engine Robotics are among those seeking new onshore investments, according to venture capitalist Andrew Qian.
The surge in investment interest comes after a long period of stagnation in China‘s venture capital sector. New Access Capital, which has invested in several AI startups, noted that many businesses are now attracting both cooperation discussions and investment offers. The DeepSeek case has highlighted the rise of innovative Chinese tech firms, moving away from previous trends of copycat startups, and offering hope for a revitalised venture capital environment.
Despite the growing investor enthusiasm, challenges remain. The strict regulatory scrutiny of initial public offerings (IPOs) in China, coupled with heightened tensions between China and the US, complicate the prospects for exit strategies. Venture capital firms are particularly focused on AI-related businesses, with several companies in sectors like AI image generation and medical tech securing significant funding in recent weeks.
However, the overall fundraising environment remains difficult. Data shows a sharp decline in venture capital investments since 2021, and while investor sentiment has improved post-DeepSeek, concerns over the regulatory landscape and geopolitical tensions persist. Some analysts remain cautious about the near-term outlook for IPOs, especially for offshore listings.
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Three men have been charged with fraud in Singapore as part of an investigation that may be linked to the illegal transfer of advanced Nvidia chips to the Chinese AI company, DeepSeek. The United States is also probing whether DeepSeek used US-made chips, which are prohibited from being shipped to China. This case is part of a wider investigation into potential AI chip smuggling operations involving several individuals and companies across countries, including Singapore.
The charges focus on two Singaporeans, Aaron Woon Guo Jie and Alan Wei Zhaolun, who are accused of falsely claiming that Nvidia chips would not be transferred to unauthorised recipients. A third man, Chinese national Li Ming, is charged with committing similar fraud regarding the shipment of servers. These actions are believed to be connected to DeepSeek’s use of Nvidia chips, although the authorities have not confirmed the company’s involvement.
If convicted, the men could face up to 20 years in prison, a fine, or both. Singapore’s authorities have been actively investigating the smuggling network, with police recently arresting nine individuals in a raid across 22 locations, seizing records and electronic evidence.
Nvidia’s business in Singapore is substantial, making it the company’s second-largest market after the US. However, only a small percentage of its revenue comes from direct shipments to the country. Singapore’s government has emphasised its commitment to strict enforcement of export controls, underscoring that the nation will not tolerate any attempts to evade international regulations.
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Taiwan’s Economy Minister Kuo Jyh-huei announced on Thursday that Taiwan Semiconductor Manufacturing Co. (TSMC) would require government approval for any overseas joint ventures, although there are no restrictions on manufacturing advanced chips abroad, except for China. This comes amid reports that TSMC is in talks to acquire a stake in Intel, a move that could stir tensions with the US, where former President Trump has expressed concerns about Taiwan taking away American semiconductor business.
Kuo reassured reporters in Taipei that Taiwan’s semiconductor industry, particularly TSMC, remains vital to the nation’s economy, describing it as the ‘sacred mountain protecting the country.’ He also clarified that while the Taiwanese government would not interfere with TSMC’s business decisions, any large overseas investments or joint ventures must be approved by Taiwan’s economy ministry, with no changes to the rules surrounding advanced chip production outside of China.
TSMC is already investing $65 billion in new factories in Arizona, where it plans to manufacture the most advanced 2-nanometre chips, though this will not occur for a few years. The government is also preparing to engage in discussions with the Trump administration over potential tariffs on Taiwanese imports, aiming to secure the best conditions for local companies in light of the ongoing trade tensions.
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China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.
DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.
The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.
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