Huawei announces ambitious chip development plans to challenge Nvidia's dominance

Huawei announces ambitious chip development plans to challenge Nvidia’s dominance

2 weeks ago

Shanghai – On Thursday, Huawei outlined its ambitious long-term chip plans, announcing the launch of the world’s most potent computing clusters, reports 24brussels.

This initiative underscores China’s strategic effort to diminish its dependence on foreign semiconductor suppliers, notably Nvidia. After years of maintaining a low profile regarding its chip ambitions, Huawei has unveiled its plans for the Ascend AI chips and Kunpeng server chips. This development could heighten tensions in the ongoing tech rivalry between the US and China.

Eric Xu, Huawei’s current rotating chairman, revealed during a presentation at the annual Huawei Connect meeting in Shanghai that the company has achieved a breakthrough in high-bandwidth memory development.

“We will follow a 1-year release cycle and double compute with each release,”

Xu stated, emphasizing the rapid advancement the company aims to achieve.

Chinese Regulatory Actions Against Nvidia

In parallel, China has heightened its scrutiny of Nvidia, the leading AI chip manufacturer, while simultaneously bolstering its domestic chip production capacities. Chinese regulators have accused Nvidia of violating national antitrust regulations.

Online regulators have directed major tech firms to cease purchases of Nvidia’s AI chips and to annul existing orders. Nvidia faces allegations of breaching compliance conditions established during its acquisition process, which aimed to prevent anti-competitive practices and ensure the supply chain to China, as announced by the State Administration for Market Regulation (SAMR).

This announcement emerged amid US-China trade negotiations and signifies a marked escalation in tensions between the two nations.

US Sanctions and Huawei’s Domestic Chipmaking Push

Huawei first disclosed plans to enter chip-making in 2018; however, those intentions remained largely under wraps following US sanctions imposed in 2019. The United States accused Huawei of posing a national security threat, a claim the company contests. Consequently, the US government restricted the export of most American technologies and components to Huawei, including vital semiconductor manufacturing tools and chips.

The sanctions severely impeded Huawei’s access to advanced semiconductor technology and US suppliers, prompting the company to refocus its efforts on cultivating domestic chip-making capabilities within China.

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