In the ongoing technological rivalry between the United States and China, Huawei has emerged as a significant beneficiary, particularly in the realm of artificial intelligence (AI). The U.S. government, in its persistent efforts to hinder China’s progress in AI development, has implemented various bans on the sale of certain products from American companies to their Chinese counterparts. The focus of this battle shifted notably to AI over the past year, with China positioning itself as a frontrunner in AI, albeit still relying on U.S. company Nvidia for crucial high-performance chips.
Recognizing the strategic importance of denying China access to top-notch Nvidia technology, the U.S. intensified restrictions on the sale of Nvidia chips to Chinese companies. Recent reports suggest that this move has steered Chinese internet companies towards Huawei’s Ascend 910B AI chip. While not directly comparable to Nvidia’s premier offerings, the Ascend 910B is deemed preferable or at least better value than the compromised Nvidia chips permitted for sale in China.
Insiders reveal that Chinese companies have been procuring Huawei’s Ascend 910B in substantial quantities, indicating a pragmatic response to the limitations imposed by U.S. sanctions. Although details about the Ascend 910B remain scant, analysts speculate that it is manufactured by China’s leading foundry, SMIC, using a 7nm process—technologically advanced, though trailing behind industry leaders TSMC and Samsung.
The Wall Street Journal notes that the surge in demand for Huawei’s AI chips reflects the unavoidable repercussions of U.S. sanctions. As China redirects resources into its domestic semiconductor sector, a sector that has gained momentum since the initiation of tech hostilities, it aims to bolster its competitiveness. While unlikely to fully catch up with industry giant TSMC, this concerted effort might position China to remain a formidable contender.
Ironically, Huawei, heavily impacted by U.S. sanctions, now finds a silver lining as it becomes a pivotal player in the production of AI chips for major Chinese tech companies like Alibaba, Tencent, and Baidu. This unexpected turn of events hints at the potential role of AI chip manufacturing in Huawei’s path to recovery amidst challenging geopolitical circumstances.
