๐จ BREAKING: THE GLOBAL TECH DIVIDE IS NO LONGER A FUTURE RISK โ ITโS ALREADY HERE ๐จ
While Western analysts spent years arguing over whether China might someday build competitive AI hardware, Beijing quietly moved ahead โ and rewrote the entire semiconductor map behind the scenes.
They told you China controlled under 5% of its own AI chip market.
The truth? 24% to 30% โ and climbing faster than anyone expected.
๐ December 5, 2025:
Moore Threads lists in Shanghai.
โข IPO Price: 114 yuan
โข Opening Price: 650 yuan
โข Total Bids: $4.5 TRILLION
โข Oversubscription: 4,000ร
All for a company with 438M yuan revenue and 6B in losses.
This isnโt hype.
This is strategic capital allocation โ sovereignty with a price tag.
๐ What changed the game:
SMICโs yields on Huaweiโs Ascend chips exploded from 20% โ 70% in just 18 months.
Cost premium collapsed from 4ร โ 1.5ร.
Production became profitable at 40% yields โ a threshold crossed nine months ago.
The part nobody in the West reported?
๐จ๐ณ Provincial governments now offer 50% electricity discounts for domestic AI chip users.
Huaweiโs CloudMatrix may burn 4ร Nvidiaโs power per rack,
but at subsidized ratesโฆ the economics flip.
๐ What comes next:
Nvidia held 66% of Chinaโs AI chip market in 2024.
By 2026, Bernstein projects single digits.
And since November 2025, foreign chips are banned from new state data centers.
The big story isnโt that China is catching up.
The big story is that China stopped trying to catch up at all.
They built a parallel AI stack โ
โข Different chips
โข Different software
โข Different optimization strategy
โข Built for resilience per sanction, not performance per watt
Two AI ecosystems now exist.
Two technological realities.
Two civilizations evolving on separate paths.
The bifurcation isnโt coming.
It already happened.
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