Huawei, the Chinese tech giant, is reportedly on the verge of launching a new AI chip, the Ascend 910C, that aims to directly challenge Nvidia’s H100. This bold move comes as Huawei continues to grapple with stringent U.S. sanctions designed to stifle its technological advancements. According to sources cited by the Wall Street Journal, Huawei is positioning the Ascend 910C as a direct competitor to Nvidia’s H100, with plans to begin shipments as early as October.
These U.S. sanctions, implemented in 2022, specifically targeted AI technology, preventing Nvidia from selling its advanced AI chips, including the H100, to Chinese firms. The restrictions were imposed due to national security concerns. Despite these significant hurdles, Huawei is pressing forward, with early reports indicating that potential customers, including major Chinese internet companies like ByteDance and Baidu, as well as telecommunications giant China Mobile, are already testing the Ascend 910C.
However, Huawei’s path is not without challenges. The company is currently experiencing production delays with its existing chips and faces the looming threat of additional U.S. sanctions. These could further complicate Huawei’s ability to secure essential components, such as machine parts and memory chips, which are critical for AI development.
This latest development is a clear indication of Huawei’s resilience and its ability to innovate under pressure. Last year, the company made headlines when an analysis of its Mate 60 Pro smartphone revealed that it contained a 5G-capable chip made by China’s top chipmaker, SMIC. This achievement came despite U.S. sanctions designed to cut Huawei off from advanced technology, demonstrating the company’s ability to find ways around restrictions.
Huawei’s resurgence in the consumer electronics market is also noteworthy, especially in China, where it has become a formidable competitor to Apple. In the second quarter of this year, Apple fell out of the top five smartphone vendors in China as competition from domestic brands, including Huawei, intensified.
Huawei has been at the epicenter of escalating tensions between the U.S. and China over technology. Since 2018, when the U.S. first banned its agencies from using Huawei equipment, the company has been subject to increasing sanctions. In 2019, Huawei was placed on a U.S. trade blacklist, preventing it from accessing critical technology, including 5G chips. The restrictions tightened further in 2020, with the U.S. requiring foreign manufacturers using American chipmaking equipment to obtain a license to sell semiconductors to Huawei.
This year, the U.S. took an additional step by revoking licenses for key companies like Intel and Qualcomm, barring them from selling chips to Huawei in a move aimed at protecting national security and U.S. foreign policy interests.
In response, China has been ramping up efforts to strengthen its domestic chip industry. The country recently announced a significant investment of 344 billion Chinese yuan ($47.5 billion) into a third chip fund, aimed at bolstering its technology sector and reducing reliance on foreign technology.
As Huawei prepares to launch the Ascend 910C, the tech world is watching closely. If successful, this new AI chip could challenge Nvidia’s dominance and further complicate the U.S. strategy of limiting China’s access to advanced technology. Huawei’s ability to innovate and compete in this high-stakes environment will be a critical test of its resilience and the effectiveness of the broader U.S.-China tech conflict.