Huawei
US worries over China’s chip growth following Huawei TSMC dispute
Huawei-TSMC chip fight is increasing tensions between the US and China’s bonds. The foreign government is concerned that despite tougher export controls, the Chinese OEM is getting advanced chipsets, contributing to China’s tech growth.
In a recent nomination for the US Commerce Department representatives, Trump’s nominee, Jeffery Kessler said the unlawful act of shipping advanced chips to China is a huge concern for the US. It questions the existence of new chipset export controls.
Jeffery added that it is important at present to ensure that the U.S. has a strong and reliable enforcement. It needs to shut the back doors that allow Huawei and its allies to enter the advanced technology sector, preventing its chip development.
The nominee further mentioned that the US should use the complete level of enforcement and penalty authorities to stop the ongoing illegal activities.
US-China’s chip war took a strange turn when a TSMC-made chip appeared in Huawei AI products. The US probed TSMC and instructed it to cut chains from Chinese suppliers until the investigation is complete.
Over time, Huawei has made huge strides in the Chinese chip industry. The company not only improved its smartphone chipsets’ performance but also enhanced its AI processor capabilities. A perfect example is the Ascend 910C used for DeepSeek R1.
US worries over China’s chip growth following Huawei TSMC dispute (Image Credits: Huawei/X)
Huawei now aims to increase the production of AI chips starting in the first quarter of this year. The tech giant achieved 40% functional production of its latest AI chips (910C). Now, the goal is to increase the figure up to 60% by the end of 2025.
A report suggested that Huawei plans to build around 100,000 Ascend 910C chips and 300,000 units of 910B in 2025 to elevate its AI processor production.
The company has even assured China’s President, Xi Jinping, that the lack of chips is easing. The situation is under control and will further improve in the time ahead.
Regardless of tough sanctions, Nvidia sees Huawei as its most powerful rival in the AI chip competition. The company believes that Huawei is doing better than before.
As Huawei moves forward with its chip reforms, US worries are taking on new dimensions. The company is still facing challenges, but it is now emerging stronger to deal with these problems.
