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Huawei is preparing to mass-produce its most advanced artificial intelligence (AI) chip, the Ascend 910C, in the first quarter of 2025 in a bid to compete with industry leaders.
Despite facing ongoing challenges due to US trade restrictions that limit its chip production capabilities, Huawei has started sending samples to tech companies while taking orders.
Ascend 910C Chip Faces Sustainability Flaw
According to an exclusive report by Reuters, Huawei’s partner, Semiconductor Manufacturing International Corp (SMIC), is utilizing its N+2 process to produce the Ascend 910C AI chip. However, limited access to advanced lithography tools has severely restricted its efficiency.
Sources indicate that the current yield rate is around 20%, well below the 70% threshold required for commercial viability in advanced chip production.
#CHINA'S #HUAWEI AIMS TO START MASS-PRODUCING NEW ASCEND 910C AI CHIP IN FIRST QUARTER OF 2025
HUAWEI HAS SENT 910C SAMPLES, STARTED TO RECEIVE ORDERS.
YIELD ON HUAWEI'S NEW 910C CHIP AROUND 20%, FAR BELOW LEVEL NEEDED FOR COMMERCIAL VIABILITY.
-REUTERS SOURCES pic.twitter.com/E05Wbp45e9— CN Wire (@Sino_Market) November 21, 2024
These issues aren’t new for Huawei. The previous model, the Ascend 910B, also struggled with a yield of around 50%, thus limiting its ability to be produced at the scale needed for widespread commercial use.
Additionally, reports have highlighted limitations within Huawei’s software ecosystem for the Ascend series, particularly its Cann software, which has further hindered production efficiency.
These production issues largely stem from the ongoing US government restrictions on Huawei, particularly limiting the company’s access to critical semiconductor technologies, such as advanced lithography tools from ASML.
These tools are essential for producing chips with the precision and efficiency required for large-scale production.
However, the road ahead is edgy. In May 2024, the Biden administration took a major step in curbing Huawei’s technological advancement by revoking export licenses for American semiconductor giants like Intel and Qualcomm.
Chinese companies Pengxinxu, SwaySure Technology, Qingdao Si’En and “potentially many others” are pointed as Huawei’s “clandestine network,”.
US lawmakers are pressing the Biden administration to block all these companies.… pic.twitter.com/3hbqIFhg4w
— Jeff Li (@jefflijun) October 17, 2024
Tensions between the US and Huawei intensified in October, with lawmakers urging the Department of Commerce to act against Huawei’s alleged attempts to bypass sanctions using a secret network of semiconductor facilities.
In November 2024, the situation reached new heights when the US asked TSMC to stop shipping advanced chips used in AI applications to Chinese customers. The US had discovered that one of these chips was being used in a Huawei AI processor.
However, help may be on the horizon. Reports suggest that China is preparing to launch its largest-ever chip fund, raising over $27 billion to support and strengthen its semiconductor industry.
