While early reports suggested that Huawei could build around 750000 AI chips this year, a US official predicted an even lower figure – 200000 units. A new piece of information reveals that the Chinese firm might not meet China’s needs in 2025.
On Thursday, Jeffrey Kessler, the US Commerce Department’s Under Secretary of Industry and Security, shared his thoughts on the US-China tech war at a congressional hearing.
Kessler said that Huawei can produce only 200000 AI chips this year, but this is not a comforting figure for the US. He added that even though the number is not that much, it is somehow helping China to catch up with the US tech capabilities.
He further mentioned that most or probably all of the produced AI chipsets will be delivered to Chinese companies. Despite a lower figure, the official is concerned that these chipsets will help Huawei to grow more aggressively in its home ground.
“Our assessment is that Huawei Ascend chip production capacity for 2025 will be at or below 200000, and we project that most or all of that will be delivered to companies within China,” said Jeffrey Kessler.
Jeffrey also said it’s critical for us not to have a false sense of security, to understand that China is catching up quickly. But that’s just a prediction for this year.
“We shouldn’t take too much comfort in the fact that China’s production of these advanced chips is relatively small, because we know they have global ambitions.”
Huawei can make only 200000 AI chips this year, but it’s still a concern: US (Image Credits: Huawei)
Why a low figure is concerning?
According to the report, China is making huge investments to ramp up its AI chip production. The step can eventually reduce its dependency on the “low-potential” foreign tech that has constantly prevented it from moving ahead in the tech sphere.
In the past few days, “China is 1-2 years behind the US in AI” has been a major topic of discussion. The matter arose when Ren Zhengfei, Huawei’s Founder, said the OEM is striving to bridge the gap with the US tech with improved chip performance.
Nvidia AI chips are still more effective than Huawei in some cases. But the US chipmaker is losing its position in the world’s second-largest market due to constant bans.
Regarding sanctions, Kessler said that export controls have been strong and will remain strong. The US needs to make sure that controls remain effective!
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