Huawei Accelerates AI Chip Development in China Amid U.S. Export Controls
Nvidia has dominated the global market for high-end AI chips, but its sales to Chinese customers have been restricted by U.S. export controls since June 2025. This shift benefited Huawei, which is now accelerating its domestic chip development plans. In a recent announcement in Shanghai, David Wang of Huawei revealed that the company will release two new Ascend AI chips earlier than planned — the Ascend 960DT and 960PR — with future generations expected to double computing power each year. While current Huawei chips still lag behind Nvidia's Blackwell line in performance, their rapid development schedule could pose a long-term challenge. However, since these new chips will be limited to China’s domestic market for now, the immediate financial impact on Nvidia is minimal. Investors should monitor whether Huawei can scale production and improve chip capabilities faster than Nvidia. Nvidia CEO Jensen Huang had previously warned that cutting off Chinese access to U.S.-made AI chips would spur local development efforts — a prediction seemingly validated by today’s news.
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Topics: AI chips Huawei Nvidia U.S. export controls