Huawei's Chip Ambitions Face Challenging Road Ahead

Huawei plans to mass-produce its advanced AI chip by 2025, but faces challenges due to U.S. restrictions. The limitations have impacted chip yields, with key technology firms struggling with supply delays. As U.S.-China tensions grow, Huawei prioritizes strategic orders amidst supply chain hurdles.

Huawei, a major player in the tech sector, is aiming to begin mass-producing its most advanced AI chip by the first quarter of 2025. However, it faces significant production challenges due to U.S. restrictions, company insiders say.

The ongoing U.S.-China tensions have severely impacted Huawei's chip manufacturing capabilities, specifically due to the lack of access to cutting-edge technology from American allies. Consequently, Huawei's production yields have faltered, falling short of what is needed for commercial viability.

Even with strategic planning and resource allocation, Huawei battles delays in order fulfillment, further compounded by the U.S.'s firm stance on curbing China's technological advancements. The situation underscores the broader geopolitical friction between the two nations over technology and trade.

(With inputs from agencies.)