Tech war: US decision to add AI server firm Inspur to its trade black list will hinder China’s computing power
- Addition of Inspur to Entity List means Shandong-based company will find it increasingly hard to source key components from US suppliers
- Inspur is one of 28 Chinese entities being added to US Commerce Department’s Entity List along with BGI and Loongson
The US decision to add Inspur Group to a trade blacklist will constrain China’s advancement in artificial intelligence (AI) as the server giant provides over half of AI servers in the domestic market, according to Chinese analysts.
Inspur, the world’s second-largest AI server manufacturer, is one of 28 Chinese entities being added to the US Commerce Department’s Entity List along with genetics firm BGI and chip developer Loongson, due to alleged activities contrary to US national security and foreign policy interests.
Inspur Group did not immediately reply to a request for comment on the development.
Shares in Inspur Electronic Information Industry Co, the company’s main listed vehicle in Shenzhen, plunged 10 per cent on Friday while the share price of Inspur Software, the company’s software unit, lost 2.6 per cent in Shanghai. Hong Kong-listed Inspur Digital Enterprise lost 7.2 per cent.
Inspur was originally at risk of being sanctioned by the US in 2020 when it was included in a list of 20 Chinese companies alleged to have links with China’s military, according to the US Department of Defense.
Intel briefly suspended shipments to Inspur in June 2020 but the shipments were later resumed when it was clear the company had not been sanctioned.