Song Chu's questions to Kingsoft Cloud Holdings (KC) leadership • Q2 2025
Question
Song Chu from Citi asked about the company's strategic adjustments to its chip procurement in light of the changing supply status of overseas chips and the rise of domestic alternatives. He also inquired about concerns over chip security vulnerabilities.
Answer
CEO Zhou Tao explained that Kingsoft Cloud has had a dual strategy since 2023, embracing both compliant overseas chips and closely collaborating with domestic suppliers to mitigate supply chain uncertainty. He stated that there has been no material impact on the company's ability to satisfy demand from its large customers. While supply is currently sufficient, he expressed a conservative long-term view, noting that a future explosion in inference demand could potentially outstrip the supply capabilities of domestic chipmakers.