Huawei is set to begin mass production of its most advanced artificial intelligence chip, the Ascend 910C, in the first quarter of 2025, according to two sources familiar with the matter. Despite U.S. restrictions that have impacted its semiconductor capabilities, the company has sent samples of the chip to select technology firms and has begun accepting orders, the sources told Reuters.
The Ascend 910C is Huawei’s latest attempt to compete with AI chipmakers like U.S.-based NVIDIA. However, the chip is being produced under challenging conditions. U.S. sanctions have significantly hindered Huawei’s access to advanced technology, with Washington citing national security concerns over Huawei’s technological advancements. Beijing, in response, denies these allegations and has ramped up efforts to make China self-sufficient in semiconductor manufacturing.
The 910C is being manufactured by Semiconductor Manufacturing International Corp (SMIC) using its N+2 process. However, limitations in advanced lithography equipment have kept the chip’s yield — the proportion of functional chips produced — at around 20%, according to one source briefed on the production. Typically, advanced chips require a yield of at least 70% to be commercially viable.
Huawei’s existing most advanced chip, the Ascend 910B, also produced by SMIC, has a yield of only about 50%. This shortfall has forced the company to lower production targets and delay fulfilling orders for the chip, the sources added.
Huawei’s progress in AI chip development underscores its determination to remain a key player in global semiconductor innovation despite U.S. restrictions. However, the low yields reflect the ongoing challenges faced by Chinese companies in scaling up production of advanced chips, which remain a critical bottleneck in the country’s push for technological self-reliance.
