Huawei Delays AI Chip Production Amid Supply Chain Challenges

Tech Giant Navigates US Restrictions and Domestic Competition

Huawei is postponing the rollout of its next-generation artificial intelligence accelerator, the Ascend 910C, signaling the ongoing impact of US export controls on China’s tech ambitions. The delay underscores the complexities of securing advanced chip manufacturing capabilities.

Production Setbacks and SMIC Partnership

Originally slated for release this month, mass production of the Ascend 910C has been pushed back to the end of the year, according to reports. The postponement stems from technical hurdles, supply chain considerations, and increased competition within China. When production commences, Semiconductor Manufacturing International Corporation (SMIC) will handle the chip’s fabrication for Huawei.

Nvidia’s China-Focused Accelerator

Concurrently, Nvidia is preparing to launch the B40 accelerator, specifically designed for the Chinese market. This chip, built using Nvidia’s latest Blackwell architecture, is engineered to comply with US export regulations, allowing for its shipment to China.

Advancing Chip Development Despite Restrictions

On May 30, 2025, reports indicated that Huawei is accelerating development of 3-nanometer chips, with mass production anticipated in 2026. The company is also exploring the production of 5-nanometer chips without relying on Extreme Ultraviolet (EUV) lithography machines.

Access to EUV technology, controlled by Dutch firm ASML due to US restrictions, is currently blocked for Huawei. As an alternative, Huawei is utilizing the SSA800 lithographic engine from Shanghai Micro Electronics (SMEE), employing a multi-patterning technique to replicate the EUV process.

Recent Chip Innovations

In December 2023, Huawei unveiled the Kirin 9006C chip, following the introduction of the Kirin 9000S, which powered the Mate 60 mobile series. The Kirin 9000S was manufactured using a 7-nanometer process.

The global semiconductor industry is projected to reach $1 trillion by 2030, according to a report by McKinsey, highlighting the strategic importance of chip development and manufacturing. McKinsey, 2024

Navigating a Complex Landscape

Huawei’s efforts to overcome technological barriers and establish independent chip production capabilities demonstrate its resilience in the face of geopolitical challenges. The company’s reliance on alternative technologies and domestic partnerships will be crucial in its pursuit of self-sufficiency in the semiconductor sector.