Huawei Aims to Mass Produce New AI Chip by Early 2025

Huawei, the Chinese technology giant, plans to begin mass production of its most advanced artificial intelligence chip in the first quarter of 2025. According to reports based on sources familiar with the matter, Huawei has sent samples of its latest chip, the Ascend 910C, which is expected to compete with those produced by the U.S. AI chip manufacturer Nvidia, to several technology companies and has started receiving orders.

Sources also suggested that U.S. restrictions on technology transfers have impeded Huawei's ability to achieve sufficiently high yields for the commercial viability of its advanced AI chips. A source knowledgeable about the results indicated that the 910C is produced by China’s leading foundry, Semiconductor Manufacturing International Corp (SMIC), using the N+2 process; however, a lack of advanced lithography equipment has limited the chip’s yield to around 20%. For advanced chips to be commercially viable, yields need to exceed 70%.

Sources noted that even Huawei's current most advanced processor, the SMIC-manufactured 910B, has a yield of only about 50%, which has compelled Huawei to lower its production targets and delay fulfillment of orders for this chip.