Huawei Challenges U.S. Sanctions with Advanced AI Chip

Chinese tech giant Huawei has announced plans to begin large-scale shipments of its advanced artificial intelligence chip, the Ascend 910C, to domestic customers as early as next month. Some shipments have reportedly already been delivered, according to informed sources

Specifications of the New Chip

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The Ascend 910C represents an architectural upgrade over its predecessor, the 910B, offering twice the computing power and memory capacity. With this chip, Huawei aims to fill the gap left by Nvidia, which has been prohibited from supplying its high-end AI chips to Chinese customers since 2022

Production Challenges

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Despite the technological advancements, Huawei is facing production challenges. The current yield rate for the Ascend 910C is around 20%, significantly below the level required for the chip to be commercially viable. These difficulties are partly due to U.S. restrictions preventing China from accessing extreme ultraviolet (EUV) lithography equipment—critical for manufacturing advanced semiconductors

Responding to U.S. Restrictions

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In response to these limitations, Huawei has begun distributing samples of the Ascend 910C to numerous Chinese tech firms and has started accepting orders. This move is aimed at reducing reliance on American suppliers and strengthening China’s self-sufficiency in high-tech sectors

Market Outlook

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Estimates suggest that demand for the Ascend 910C may exceed 70,000 units, with a potential market value approaching $2 billion. However, these figures and delivery timelines remain tentative and depend heavily on Huawei’s ability to overcome its current production hurdles

Huawei’s development and deployment of the Ascend 910C chip mark a direct challenge to U.S. sanctions and reflect the company’s ambition to solidify its role in the global AI ecosystem. As geopolitical tensions persist, the future of this initiative hinges on Huawei’s capacity to navigate both technical and regulatory obstacles