BERLIN, GERMANY – SEPTEMBER 3: People gather to listen to Huawei's keynote speech at the IFA 2020 special edition consumer electronics and home appliances trade fair.
Sean Gallup | Getty Images News | Getty Images
Chinese tech giant Huawei plans to challenge Nvidia with new artificial intelligence chips amid ongoing U.S. sanctions aimed at stifling the company's technological progress, The Wall Street Journal reports.
Citing people familiar with the matter, the Times reported that Huawei has told potential customers that its next-generation processor, the Ascend 910C, is on par with Nvidia's H100, and that Huawei plans to ship the chip as early as October.
US regulators imposed restrictions on Nvidia in 2022 banning it from selling AI chips, including the H100, in China, citing national security concerns.
Potential customers, including Chinese internet companies and telecommunications operators, are reportedly already testing the Ascend 910C chip, with TikTok's parent company ByteDance, Baidu and China Mobile in early discussions to buy it.
But Huawei is facing production delays for its current chips, the Journal reported, adding that the company also faces further U.S. restrictions that could affect its ability to obtain machine parts and memory chips for AI.
It's the latest sign of Huawei's ability to counter U.S. efforts to restrict its access to advanced technology.
Last year, an analysis of Huawei's Mate 60 Pro smartphone revealed that it supported 5G using chips made by Chinese chip giant SMIC, despite U.S. sanctions aimed at locking the Chinese tech giant out of 5G technology.
The resurgence of Huawei's consumer business, which includes smartphones and laptops, poses a threat to Apple in China, one of its largest markets.
According to a report by Canalys, Apple dropped out of the list of the top five smartphone sellers in China in the second quarter due to increased competition from domestic brands such as Huawei.
Huawei has been at the center of US sanctions aimed at securing American networks and supply chains.
In 2018, the United States banned its government agencies from acquiring Huawei equipment and services.
Huawei was then placed on a US trade blacklist in 2019, banning American companies from selling technology, including 5G chips, to the Chinese tech giant. In 2020, the US tightened its chip restrictions on Huawei, requiring foreign manufacturers using US chipmaking facilities to obtain licenses to sell semiconductors to Huawei.
In May, the United States revoked licenses for some companies, including Intel and Qualcomm, to sell semiconductors to Huawei, citing national security and foreign policy interests.
China has stepped up efforts to promote its domestic semiconductor industry, pumping 344 billion yuan ($47.5 billion) into its third semiconductor fund aimed at bolstering the high-tech sector.
Read the full WSJ report here.
