China - September 23, 2024

AI fuels China's telecommunications industry

(Voice_over)

China's telecommunications industry is continuing its rapid development after posting strong gains in H1 this year, driven largely by the ever-expanding artificial intelligence sector.

Official data shows that in the first half of the year China's various telecommunications firms achieved a cumulative revenue of nearly 200 billion U.S. dollars, about four percent more than last year.

Among them, telecom operators reported a three percent increase in growth and six percent increase in new profits.

Optical module and data center telecom companies, meanwhile, saw revenues soar by more than 70 and 20 percent respectively.

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Wu Chaoze, Chief analyst of communications, China Securities:

"In the first half of 2024, the telecommunications industry achieved growth and telecom operators managed their business steadily. The demand for artificial intelligence computing power infrastructures construction remained strong. Driven by such strong demand, relevant companies of optical modules and Internet Data Centers (IDCs), as an important part of them, showed improved performance with better results. At the same time, the demand for computing power infrastructures in the development of the AI industry will further increase, and economic transformation and growth will also derive more demands for networking and intelligent upgrades in all walks of life, which will bring about more opportunities for the future development of the industry."

(Voice_over)

China's AI industry has made significant strides in recent years with a broad range of application scenarios.

Last year, the country's core AI industry was valued at about 81 billion U.S. dollars, up nearly 14 percent from 2022.

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