Chinese artificial intelligence developer DeepSeek is engineering its own custom silicon specifically designed for AI inference, according to reports from multiple wire services.

The chip targets the inference phase of AI workloads, aiming to reduce the company's dependence on large semiconductor suppliers for its growing computational needs.

This development marks a significant step in the broader trend of AI companies seeking vertical integration in their hardware stacks.

By designing specialized processors, DeepSeek aims to optimize performance and cost efficiency for its specific models, bypassing the general-purpose nature of commercially available chips.

The move could have implications for the competitive landscape in the AI semiconductor sector, as more players attempt to control their own supply chains.

The report comes amid heightened scrutiny of China's technological self-reliance efforts and ongoing geopolitical tensions affecting global semiconductor trade.