The trade war between the United States and China has resulted in Huawei being blocked from accessing US-tech chips and TSMC fabrication plants. This move was initially seen as a disaster for Huawei, but after five years, they have bounced back and are now starting to increase their artificial intelligence (AI) chip production.
According to a Financial Times report, one of Huawei's AI chip fabrication plants will start production before the end of 2025, with two more to open in 2026. The owners of the three plants are still unknown, but the increase in production is closely related to the Chinese government's order for local companies to stop using NVIDIA's AI chips.
Huawei launched a CloudMatrix 384 system consisting of 384 Ascend 910c chips, which they say can offer power comparable to NVIDIA GB200 NVL72. If the ban on the use of NVIDIA chips continues in China, Huawei will be the company that will supply domestic AI chip needs.
This morning NVIDIA announced that there will be no sales of the NVIDIA H20 chip in Q2 2025. They also last week reported that they have stopped production of the H20 chip and are in the process of producing the B30A chip which is more powerful but only 80% of the capabilities of the B300 chip. Although NVIDIA has provided a prototype for testing, it is not known whether the Trump administration will allow it to be sold to China.