Huawei Expands AI Chip Production to Challenge Nvidia Amid U.S. Sanctions

May 5, 2025

Huawei is intensifying its efforts to develop and produce advanced artificial intelligence chips, in a move aimed at reducing its reliance on Western suppliers like Nvidia and ASML, amid growing U.S. restrictions on the export of advanced technology to China.
The company is accelerating the establishment of new production lines for advanced semiconductors at its facilities in Shenzhen, funded by the regional government. Manufacturing sites in the Guanlan area have seen significant development since construction began in 2022.

Developing Ascend Processors to Rival Nvidia

Huawei is focusing on developing its Ascend processors, particularly the Ascend 910D chip, marking an ambitious attempt to manufacture its advanced chips independently. These processors aim to enhance data processing efficiency in AI applications such as deep learning and big data analytics.

Technical Challenges and U.S. Restrictions

Huawei faces significant technical hurdles, especially as U.S. sanctions prevent its manufacturing partners from acquiring the latest extreme ultraviolet lithography (EUV) systems from ASML. This means Huawei’s main chips will likely continue to rely on older technologies until at least 2026.

China's Response to U.S. Sanctions

In an effort to reduce dependence on Nvidia, Beijing has urged Chinese companies to adopt domestic alternatives like Huawei’s products. Huawei has already begun delivering its latest AI chipsets to Chinese clients who have increased their orders after being barred from accessing Nvidia’s semiconductors due to U.S. export restrictions.

A Global AI Race

These developments come amid escalating trade tensions between the United States and China, with chip manufacturers caught in the heart of the intensifying economic confrontation. With mounting restrictions and the imposition of reciprocal tariffs, companies like Nvidia are increasingly facing challenges that hinder the flow of technology and innovation opportunities.

China’s Digital Future

Huawei’s efforts reflect its ambition to close the technological gap with Western firms and strengthen its position in the global AI market. As U.S. restrictions tighten, Huawei is expected to continue advancing its

Address:

Ground Floor, The Sotheby Building, Rodney Bay, Gros-lslet, Saint Lucia

Castries, Saint Lucia

1:12 Blqis street, amprouzo, Moharm Bek, Egypt

Alexandria, Egypt

Contact:

info@maxifyfx.com

Registration:

A company registered in Saint Lucia with registration number (2023-00670) is entitled to provide

trading services in financial markets, except for the United States, Myanmar, North Korea and Iran

Risk DisclaimerMaxify is a registered company in Saint Lucia under registration number (2023-00670), authorized to provide trading services in financial markets, excluding the United States, Myanmar, North Korea, and Iran.
*Office Address:* Ground Floor, The Sotheby Building, Rodney Bay, Gros-Islet, Saint Lucia.*High-Risk Investment Notice:* Trading Contracts for Difference (CFDs) involves significant risk and can lead to the rapid loss of your capital due to the leveraged nature of these instruments. Leverage can amplify both gains and losses. It is imperative to evaluate your investment objectives, experience level, and risk tolerance carefully before trading.You should only invest money that you can afford to lose. Be fully aware of all the associated risks and seek advice from an independent financial advisor if necessary. Please ensure you have thoroughly read our Risk Disclosure Statement for further details.
*Disclaimer:* Past performance does not guarantee future results. Market volatility and other external factors can significantly influence trading outcomes.By utilizing Maxify's services, you confirm your acknowledgment and acceptance of this risk disclaimer.