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Updated: April 19 – 2025
Huawei is preparing to commence mass production of its most advanced artificial intelligence chip, the Ascend 910C, in the first quarter of 2025. This move comes despite ongoing U.S. sanctions that have impacted the company’s semiconductor capabilities. The Ascend 910C, designed to compete with U.S. chipmaker Nvidia’s offerings, has already been sampled to select technology firms, with Huawei beginning to accept orders.
The chip is being manufactured by China’s Semiconductor Manufacturing International Corp (SMIC) using its N+2 process. However, the absence of advanced lithography equipment has resulted in a production yield of approximately 20%, significantly below the 70% threshold typically required for commercial viability. Huawei’s previous model, the Ascend 910B, achieved a yield of about 50%, leading to reduced production targets and delays in fulfilling orders.
Huawei’s initiative to mass-produce the Ascend 910C signifies China’s broader ambition to achieve self-sufficiency in semiconductor technology. The move could potentially disrupt the current market dynamics, especially as U.S. export restrictions have limited China’s access to advanced chips. Nvidia, for instance, faces new licensing requirements for its H20 AI chips, leading to significant financial implications and potential market share losses.
While Huawei’s low production yields present challenges, the company’s efforts underscore a strategic push to establish a foothold in the AI chip market. If successful, this could reduce China’s reliance on foreign technology and alter the competitive landscape in the semiconductor industry.
For investors, Huawei’s advancements in AI chip production highlight a critical area of technological development with significant market implications. While the current production yields pose risks, the company’s determination to overcome these challenges could position it as a formidable player in the AI sector. Monitoring Huawei’s progress and the broader geopolitical factors influencing the semiconductor industry will be essential for informed investment decisions.
Source: The New York Times
