In the PC era, the phrase "coreless (chip) and less soul (operating system)" marked a challenging period for China's information industry. However, as the AI wave sweeps across the globe, China is now making significant strides in the smart era. At the 19th China International Industry Fair in Shanghai, breakthroughs in top-tier technology are signaling new opportunities for the Chinese AI sector, driving a transformation and injecting fresh momentum into its development.
Entering the forefront of the industry, a group of AI "knives" — innovative technologies and companies — are emerging. This year, the Industrial and Commercial Exposition featured a dedicated AI area. At Cambrian’s booth, a circuit board smaller than a tablet was on display. A staff member pointed to a small square at the center, stating, “This chip was developed independently by us.â€
Cambrian’s founder and CEO, Chen Tianshi, expressed ambitions to capture 30% of China’s high-performance smart chip market within three years and have over one billion smart terminals worldwide using their technology. The chip showcased this time has been optimized for power consumption, energy efficiency, and cost. It achieves a leap in performance-to-power ratio, with applications spanning image recognition, security monitoring, autonomous driving, drones, speech recognition, and natural language processing.
Globally, no company has yet established a fully recognized AI ecosystem or set industry standards, creating a window of opportunity for China to make a leap forward in the AI field. More and more companies are proving that China’s AI development is not only supported by data but also by improved algorithm systems and advanced application scenarios.
In this space, companies like Yitu and Shangtang have introduced face recognition solutions. In international competitions such as the FRVT test organized by the U.S. National Institute of Standards and Technology — often called the “closed-book exam†of the industry — Yitu became the first Chinese team to win in 2017. Fan Yanyan, vice president of the company, highlighted a system capable of handling hundreds of millions of identifications with ultra-low false alarm rates, aiming to bring the technology to real-world applications.
Driven by practical needs, China is pushing forward with its AI initiatives. In July, the State Council released the "New Generation Artificial Intelligence Development Plan," highlighting key challenges: lack of major original results, gaps in basic theory, core algorithms, and key equipment, as well as shortages in high-end chips and major products. Additionally, there is a need to build a strong industrial ecosystem and improve infrastructure, policies, and talent development.
As a latecomer, China may lag in foundational technologies, but it has made significant progress in the technology and application layers, particularly in areas like face and voice recognition. Many cities, including Shanghai, Anhui, Zhejiang, Guizhou, and Jiangxi, have already planned ahead for this future industry.
Chen Mingbo, director of the Shanghai Municipal Commission of Economics and Letters, emphasized that Shanghai will focus on application-driven growth, industrial chain integration, data sharing, platform construction, and demonstration projects. The goal is to build an internationally renowned AI innovation center and form an AI industry cluster worth 10 billion yuan by 2020.
Data serves as the fuel for AI and a critical factor in attracting talent. As a major holder of core data, the government is shifting its approach. Fang Shizhong, district governor of Xuhui District, stated that the district aims to establish a complete AI ecosystem and become a global AI innovation hub, focusing on urban security, government services, healthcare, and cultural creativity.
Sun Ninghui, director of the Institute of Computing at the Chinese Academy of Sciences, stressed the importance of cultivating hardware and software companies to drive the AI industry forward. With global leadership in smart chips, collaborations with industry partners are expected to enable China to "change lanes and overtake."
Talent remains the most critical factor. According to a McKinsey report, while China and the U.S. lead globally, China faces challenges in attracting experienced AI professionals. To address this, the plan encourages collaboration between academia, research institutions, and enterprises. Companies like Shangtang are partnering with universities to provide computing resources and data, offering real-world training for researchers.
Xu Li, co-founder and CEO of Shangtang, emphasized that AI competition hinges on talent. Deep learning experts cannot be cultivated through traditional methods alone; seamless integration between academia and industry is essential. This synergy promotes technological advancement, aligns corporate needs with research directions, and fosters the development of cutting-edge AI talent, strengthening China’s original technology base.
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