Huawei's Chip Gamble Amidst U.S. Trade Tensions

Huawei plans to mass-produce its Ascend 910C AI chip by 2025 despite U.S. restrictions limiting supply. These restrictions, particularly on advanced lithography equipment, have reduced production yields, delaying orders. Huawei prioritizes strategic orders amidst rising U.S.-China trade tensions affecting the semiconductor industry.

Huawei is set to begin mass production of its most advanced AI chip, the Ascend 910C, by early 2025. Despite ambitious plans, the Chinese tech giant faces significant hurdles due to U.S. restrictions that have impacted its chip production capabilities.

These restrictions have been particularly challenging for Huawei, as they curtail the supply of necessary advanced lithography equipment. As a result, the company's chip manufacturing yields are notably below the commercial viability threshold. Currently, the yield for Huawei's advanced processors is insufficient, prompting production cutbacks and order delays.

In the broader context, Huawei's struggle reflects escalating trade and security tensions between the U.S. and China. As a focal point of these tensions, Huawei's situation underscores the challenges that Chinese tech firms face amid U.S. trade policies aimed at restricting China's semiconductor advancement.

(With inputs from agencies.)