Huawei's AI Chip Production Halved as US Restrictions Bite
Huawei's chip production faces significant challenges due to US restrictions. The company has had to find alternative suppliers and production methods to continue developing advanced AI processors. Recent reports suggest that Huawei is planning to produce around 653,000 Ascend 910C chips this year, using two 910B dies per chip.
Huawei has been forced to look beyond its traditional suppliers since the US imposed restrictions in 2020. Both SK Hynix and Samsung have ceased business with Huawei, making it difficult for the company to source necessary components. Despite these challenges, Huawei has managed to include components from TSMC and Samsung in its advanced AI processors. However, TSMC ended its business relationship with Huawei in mid-September 2020, halting shipments and production of the Ascend 910C chip.
Huawei's dependence on foreign hardware has led the Chinese government to invest in local AI chip and HBM production facilities. Analysts predict that China will face HBM bottlenecks by the end of the year, making it crucial for the country to develop its own production capabilities. Huawei, meanwhile, is planning to produce its third generation AI processors, but the specific details and suppliers remain unclear as of October 2025.
Huawei's chip production is heavily impacted by US restrictions, leading the company to explore alternative suppliers and production methods. While Huawei has managed to include components from TSMC and Samsung in its AI processors, TSMC has since halted production. The Chinese government is investing in local production facilities to reduce dependence on foreign hardware, but the specific details of Huawei's third generation AI processors remain uncertain.
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