China is focusing on large language models in the artificial intelligence space.

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Production of Chinese chips could ramp up this year, as executives at the country's biggest tech companies look to deploy more homegrown technology — as it's reported U.S. chip giant Nvidia could return.

On Wednesday, internet titan Tencent suggested that production of Chinese homegrown chips could ramp up this year, while e-commerce giant Alibaba discussed how it is expanding its self-developed semiconductor usage.

The comments underscore how, in the absence of Nvidia's technology due to export restrictions, China has pushed its domestically developed chips in the search for self-sufficiency to power its AI ambitions.

China chip ramp

Tencent Chief Strategy Officer James Mitchell said the company will have a "substantial increase" in capital expenditure, especially in the second half of the year, as more China-designed chips become "available to us month by month."

Mitchell also said…