Earlier quoted context omitted.
It's also going to be a 30% additional discount on Chinese TPU equivalent chips, especially since they have 7nm production now. I foresee it backfiring.
That depends on how SMIC's ramp goes. Right now they're shipping what amount to samples only. And even then there's no chips to fab absent more development work. Making a ML accelerator is hard . If AMD and Intel (actually Google and Tesla seem closer) can't beat NVIDIA, you really think Goodix is going to get it done? High tech is still high tech for a reason. Sure, in the long term China is going to get there event…
AMD and Google have already beat Nvidia at the ML accelerator hardware game in the past. Google TPUs have had the edge over Nvidia cards for a few years, and AMD spent almost a decade with an edge in compute over Nvidia at every level. It's just that Google TPUs aren't commercially available and AMD GPUs lacked the software stack and critical mass.
Actually building a fast ML accelerator is far from a monumental task. It's difficult, but well within the reach of a country which fully designed a Top10 processor by itself. And now has the means to manufacture super high end chips.
It's not a case of intermediate decade or two. The Chinese are pretty much already there. They already have at least one indigenous exascale supercomputer and their own 7nm process. They can make an ML accelerator comparable to the A100 if they want to. Believe it or not, there are only so many ways of doing matrix multiplication in hardware. The hard part is lithography, and they did it.
EDIT: I forgot to mention, but SMIC wanted to keep their 7nm production secret to reduce incentives for the US to force ASML to stop 28nm lithography machines, keeping the impression that banning the sale of EUV machinery was enough to stop their advances. That's why they mix everything under 28nm in their financial reports, to show their very strong profitability without tipping their hand.