At least Loongson Technology and Cambricon Technologies
Local companies are actively developing in China, developing their own processors, GPUs and specialized chips. However, these companies are reportedly suffering huge losses.
According to the source, by the end of 2023, companies such as Loongson Technology and Cambricon Technologies will record huge losses. For example, Loongson estimates an annual loss of $43.36 million, compared with a profit of $7.2 million in 2022. The company's revenue will decrease by 31%.
Cambricon Technologies, which develops accelerators for AI, forecasts a loss of almost $130 million.
Analysts say that the development of companies is hampered by US sanctions, which complicate the process, and the active support of the Chinese government does not help the situation. In particular, Chinese companies under sanctions cannot save money through more massive purchases from the largest market players.