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China's DeepSeek Plans Own Chip Production Amid US Export Controls

Chinese AI firm DeepSeek is reportedly planning to enter the chip manufacturing business in response to US export controls. The company has developed large language models competitive with US offerings.

7 July 2026
China's DeepSeek Plans Own Chip Production Amid US Export Controls

Chinese artificial intelligence company DeepSeek is planning to enter the silicon manufacturing business, according to sources cited by Reuters. This move comes as a direct response to US export controls that have impacted the company's ability to procure advanced semiconductors.

Sources familiar with the matter revealed that DeepSeek has been working on this expansion into chip production for approximately one year. The company has reportedly been engaging with potential partners in the hardware and silicon sectors and has been actively hiring engineers for the initiative. DeepSeek has gained recognition for developing large language models that rival those from US-based companies like OpenAI and Anthropic.

By pursuing its own chip production capabilities, DeepSeek aims to reduce its reliance on foreign technology supply chains and bolster its competitive position in the rapidly evolving AI market. The company has not yet officially commented on these reports.

This strategic shift by DeepSeek could have broader implications for the global semiconductor industry and the trajectory of AI development, as China seeks greater self-sufficiency in critical technological domains.

Original source: arstechnica.com