Huawei plans to start mass production of AI chips

Chinese tech giant Huawei plans to start mass production of its latest artificial intelligence chips in the first quarter of 2025, even as it struggles to make enough due to U.S. restrictions.

The telecom giant has sent samples of the Ascend 910C — its latest chip, which aims to compete with those made by U.S. AI chipmaker NVDA.O — to some tech companies and has started taking orders, Reuters reported.

Washington has imposed a series of restrictions on Huawei and other Chinese companies, arguing that their technological advances pose a risk to U.S. national security. Beijing, which is trying to make the world’s second-largest economy self-sufficient in advanced semiconductors, denies such claims.

The restrictions have hampered Huawei’s ability to get yield — the percentage of chips that come off the manufacturing line that are fully functional — from AI chips that are advanced enough to be commercially viable.