Huawei to Mass Produce its Indigenous AI Chip

China's Huawei plans to begin mass production of its most advanced artificial intelligence (AI) chip, the Ascend 910C, in the first quarter of 2025, despite facing challenges due to US-imposed restrictions, according to sources familiar with the matter. 

The Ascend 910C, designed to compete with Nvidia's AI chips, has already been sent as samples to select technology firms, and Huawei has started accepting orders. However, Huawei's efforts are constrained by US restrictions, which have disrupted its ability to achieve sufficient chip yield—the percentage of fully functional chips produced during manufacturing—to ensure commercial viability.

The chip is manufactured by Semiconductor Manufacturing International Corp (SMIC), China's leading contract chipmaker, using its N+2 process. Despite this, the absence of advanced lithography equipment has resulted in a low yield rate of approximately 20%, as reported by one of the sources.

Huawei’s AI chip production comes amid heightened US-China tensions over trade and national security. The US argues that advancements by Huawei and similar firms pose security risks, while China denies these claims, asserting that such measures hinder its economic independence in advanced semiconductor technologies. 

This development highlights Huawei’s determination to push forward its AI ambitions and reduce reliance on foreign chip technology, even in the face of significant geopolitical and technological hurdles.