Huawei Hits Production Snag for AI Chip as Nvidia Strategically Enters Chinese Market
Huawei’s ambitions to dominate the AI accelerator market have been slightly delayed. Originally set for mass production this month, the company’s upcoming chip-the Ascend 910C-has been pushed back to the end of the year. According to reliable sources, the delay stems from technical hurdles and ongoing supply chain issues that have plagued Huawei and its domestic rivals.
Interestingly, while Huawei struggles to get its next-gen chip ready, Nvidia has found a clever workaround to re-enter the Chinese AI market. The American tech giant is preparing to begin production of its new B40 AI accelerator, tailor-made for the Chinese market and compliant with U.S. export restrictions. Built on the latest Blackwell architecture, the B40 aims to be just powerful enough for cutting-edge AI tasks while staying within the performance limits allowed under current trade sanctions.
With AI demand exploding in China, customers are growing impatient. A new unofficial industry rule has emerged: “Only sell what you have in stock-fail to deliver, and you’re out.” In this high-pressure environment, Nvidia’s swift maneuvering gives it a distinct edge over Huawei, at least for now.
When Huawei finally begins production of the Ascend 910C later this year, it will rely on China’s SMIC to manufacture the chip using its N+2 7nm process node. By comparison, Nvidia’s H20 AI GPU-though restricted from export-is produced on TSMC’s far more advanced 4nm node. That makes Nvidia’s chips potentially faster and more energy-efficient, adding further pressure on Huawei to catch up.
The irony in this tech race is striking: U.S. sanctions were meant to sideline Huawei, but in doing so, they handed the Chinese market to the company on a silver platter. Now, with Nvidia’s calculated return, the competition inside China’s borders is heating up-and it’s still anyone’s game.
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