As the United States intensifies export restrictions on advanced semiconductor technologies to China, Nvidia CEO Jensen Huang has expressed concerns that these measures could inadvertently bolster Huawei’s position in the global AI chip market. In recent discussions with U.S. lawmakers, Huang highlighted the potential for Huawei to meet the growing demand for AI chips, especially if Nvidia’s access to the Chinese market continues to be constrained.
Huawei’s Ascend in AI Chip Development
Huawei has been making significant strides in AI chip development, notably with its Ascend series. The company recently introduced the CloudMatrix 384 AI chip cluster, which integrates 384 Ascend 910C processors. This system reportedly surpasses Nvidia’s NVL72 in overall compute power by 67% and offers over three times the memory capacity. However, it comes with trade-offs, including higher energy consumption and increased operational complexity.
Additionally, Huawei is preparing to test its most advanced AI chip, the Ascend 910D, aiming to rival Nvidia’s high-end offerings like the H100. While still in early development, this chip employs advanced packaging to combine multiple dies for enhanced performance. Despite being less power-efficient compared to Nvidia’s H100, Huawei plans to ship over 800,000 Ascend 910B and 910C chips in 2025 to domestic clients like ByteDance.
Nvidia’s Strategic Adjustments
In response to U.S. export controls, Nvidia is revising the design of its AI chips to comply with regulations while still serving major Chinese clients, including Alibaba, ByteDance, and Tencent. This adjustment follows recent restrictions that banned the export of Nvidia’s H20 AI chips to China, potentially leading to significant losses for the company. Nvidia is also developing a China-specific version of its latest Blackwell AI chip, with samples expected by June.
Implications for the Global AI Chip Market
The U.S. export restrictions aim to curb China’s access to leading-edge AI technology. However, these measures may accelerate the development of domestic alternatives like Huawei’s AI chips. Huang emphasized that while Nvidia maintains a significant lead over competitors, the rapid advancements by companies like Huawei could reshape the competitive landscape.
As the AI chip race intensifies, the interplay between geopolitical policies and technological innovation will continue to influence market dynamics. Companies like Huawei are poised to fill gaps left by restrictions on firms like Nvidia, potentially altering the balance of power in the global semiconductor industry.
