Chinese chip manufacturers are looking to triple the country's production of artificial intelligence processors by 2026, the Financial Times reported Wednesday.

A facility for Huawei's AI processors is slated to start production as soon as the end of 2025, the report said, citing two people with knowledge of the plans.

Chinese firms are also rushing to develop chips compatible with DeepSeek's requirements, including Huawei, the FT said.

Combined capacity at the three manufacturers could exceed that of Semiconductor Manufacturing International Corp. (HKG:0981, SHA:688981), the FT said.

SMIC is also looking to double its capacity in 2026 for 7-nanometer chips. Other Chinese chip makers such as Cambricon Technologies (SHA:688256), MetaX, and Biren Technology will then be able to get a slice of SMIC's capacity, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)