China’s AI sector is shifting from catch-up to commercialization, with value concentrating in hardware bottlenecks and large platforms rather than independent model labs. Across memory, DRAM and NAND shortages, HBM reallocation and rising Chinese capacity are reshaping pricing and share gains for CXMT and YMTC. Taiwan and Singapore are extending into glass packaging, photonics and advanced packaging, while Chinese auto ambitions are stirring US backlash ahead of Xi’s visit.