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China's AI push banks on cheap power to offset chip-efficiency gap

By MLex Staff ( November 10, 2025, 08:41 GMT | Comment) -- China's push to replace foreign semiconductors in data centers with domestic alternatives highlights the steep economic and efficiency trade-offs of technological self-reliance. In its pursuit of AI leadership, China is discovering that geographic arbitrage offers a temporary reprieve, considering the race depends not only on what the silicon can do but also on having enough cheap power to run it.China’s latest order for state-backed data centers to swap foreign AI chips for domestic alternatives underscores its drive for technological self-sufficiency. Homegrown processors lag in efficiency, but the country’s abundant low-cost electricity may narrow the gap in the race for AI dominance....

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