Huawei plans to boost new AI chip production in Q1 2025 despite US ban

Huawei is planning for mass production of its new AI Ascend 910C chip in Q1 2025. This would be a major step in the company’s chipset progress. It will eventually increase the customer base for Huawei’s AI processors in its home ground.

As noted by Reuters, Huawei is ready to ramp up the Ascend 910C AI chip production by the first quarter of next year (Q1 2025). Doing so will help it in battling with its U.S. rival – Nvidia. Although there could be major hurdles in this remarkable journey.

The company is seemingly ready to open a new chapter in its AI processor growth despite ongoing U.S. trade challenges. No doubt, the news will make the foreign authorities more cautious towards the Chinese semiconductor industry.

U.S. authorities are already eyeing Chinese firms these days. After discovering the TSMC-made SoC in Huawei’s AI product, the foreign government became attentive.

Inputs reveal that the Ascend 910C production capacity is currently only 20%. Low yields of chips have been a constant problem for the company. But the OEM will probably resolve the supply issues to a greater extent in the first quarter of 2025.

Huawei has been sending Ascend 910C AI chip samples to some of its top clients in China. Although the set of U.S. curbs affected the company’s production line.

Huawei Ascend AI chipsets (Image Credits: Huawei)

The U.S. authorities see Huawei and other Chinese firms as a major risk to their national security. According to the Biden administration, China’s access to high-end technologies and chipmaking tools will help it to spy on their confidential details.

Speaking of the Ascend 910C, SMIC has built the new AI chip on the N+2 process. However, the lack of advanced equipment has lowered the chip production. Meanwhile, the advanced chip requires at least 70%+ yield for commercial sale.

Reuters sources reveal that even the Ascend 910B chip is currently limited to 50% of yield. The US has also restricted foreign chipmakers from selling high-end chips to China. One of the sources says:

“Huawei knows there is no short-term solution, given the lack of EUVs, so it will give priority to strategic government and corporate orders.”

The good news is that the company continues to make progress in the chip field. But it will be interesting to see how far it can go in this direction.

Huawei plans to boost new AI chip production in Q1 2025 despite US ban (Image Credits: Huawei)

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