Huawei GPU processor demand reportedly increased by 1 million units

Huawei continues to focus on its self-developed GPU and AI chips development and it seems the demand for these components already increased by 1 million units in 2024. However, this information consists of both pros and cons for the Chinese firm.

According to some Huawei internal and purchase channels, the overall GPU chip demand has increased by 1 million units in the current year (2024). Notably last year, the firm made a total shipment of 100,000 GPU computing power units.

Perhaps this time, the Chinese tech giant may experience new growth in terms of GPU processor shipment. The details further say that Huawei aims to raise the production capacity of its self-developed GPU by hundreds of thousands of units in 2024.

However, the expected increase in production doesn’t seem enough to meet the growing demand for Huawei GPU chips in the market. As per some inputs, the firm already received a big order for the respective processors in January this year.

Besides, new customers continue to place more orders which ultimately exceeded the demand over the supply chain, resulting in outage issues in advance.

Huawei GPU computing power (Source: Huawei)

Increase in Price:

On the other hand, the supply problems not only affected the GPU chip quantity in the market but also its price. While the market price of the computing power GPU was 70,000 yuan in August 2023, it has now reached 120,000 yuan.

A few analysts predicted two major reasons behind the GPU supply chain issues. The first is the rapid growth of AI and computing power, which has surpassed the earlier estimates. Whereas, the second one is limited supply or core component in the global market.

However, Huawei is likely to make new ways that can help to overcome these situations in the time ahead. The company will undoubtedly make efforts to make its GPU chips available to its customers as soon as possible.

(Source)