Huawei develops AI chips for China instead of Nvidia

Huawei is working on testing its new and most powerful AI processor to date, the Ascend 910D, The Wall Street Journal reports.

The company has already approached several Chinese tech firms with a proposal to test the new chip, checking its technical capabilities.

In parallel, Reuters reports that Huawei is preparing to begin mass deliveries of another of its advanced AI chips – the 910C – to Chinese customers as early as next month.

Model training requires processing large amounts of data and high computing power, so Nvidia’s advantage in this area was key.

News about Huawei’s new products indicates China’s intensification in the fight for technological independence in the field of artificial intelligence and reducing dependence on American chips.

The trade war between the US and China is gaining new momentum. After Donald Trump imposed tariffs on countries all over the world, causing instability in financial markets, the situation stabilized for a while thanks to a 90-day pause. However, China quickly responded with mirror measures, which provoked another round of US restrictions. Today, US tariffs on Chinese goods can reach 145%, while Chinese tariffs in response have increased to 125%. In these conditions, the question remains: how will technology companies with global production chains manage to continue operating?

As it turned out, China left a loophole for the supply of technology products. According to the clarification of the China Semiconductor Industry Association (CSIA), the country of origin for all integrated circuits — both packaged and unpackaged — is considered the location of the wafer manufacturing plant. Since a significant part of American companies, such as AMD, Nvidia and Qualcomm, manufacture chips outside the US, for example, at the facilities of Taiwan’s TSMC, they will be able to continue supplying to China without paying new tariffs.

Companies that rely on their own US production are in a more difficult situation. First of all, these are Intel, but also Texas Instruments, Analog Devices (ADI) and ON Semiconductor. Their products may be subject to new tariffs.At the same time, even chips that are packaged in China but manufactured in the US may be subject to additional taxes.

According to representatives of the CSIA, such a policy should stimulate the development of domestic production chains and reduce the dependence of the Chinese technology industry on foreign components.