AI Chips

At Huawei Connect 2025, Huawei revealed its Ascend chip roadmap, including the 950, 960, and 970 series for AI and HPC, challenging NVIDIA’s dominance. Despite semiconductor manufacturing challenges, Huawei focuses on domestic design, proprietary tech, and open-source strategies. New Ascend chips promise performance leaps with enhanced interconnects. Huawei’s SuperPoD and SuperCluster strategy, powered by UnifiedBus 2.0 (an open protocol), aims to provide scalable, high-performance computing, expanding into general-purpose computing with Kunpeng 950 processors and TaiShan SuperPod. Huawei claims significant performance advantages over competitors.

China has reportedly expanded restrictions on Nvidia chips, impacting the RTX Pro 6000D AI chip in addition to the H20 GPU. This move signals growing confidence in China’s domestic semiconductor industry and a potential negotiation tactic with the U.S. Huawei is emerging as a domestic force with its Ascend chips. Experts view these actions as a strategic attempt to gain leverage in trade negotiations, influencing U.S. policy on export controls. The U.S. may re-evaluate its approach balancing security concerns with economic interests.

House Speaker Mike Johnson criticized China as an “adversary” after reports surfaced of Beijing instructing tech firms to stop buying Nvidia’s AI chips, including the RTX Pro 6000D. This move signals China’s growing confidence in its domestic semiconductor industry and its push for self-reliance, substituting Nvidia’s products with alternatives like Huawei’s Ascend 910B. Nvidia’s CEO expressed disappointment, and analysts note potential revenue losses for U.S. chipmakers, highlighting the escalating conflict over AI chip access. China’s strategy may aim to bolster its domestic AI chip development.

Nvidia CEO Jensen Huang addressed challenges in the Chinese market amid escalating US-China tech tensions. He expressed disappointment over reports of China’s potential ban on Nvidia’s RTX Pro 6000D chip, designed specifically for the Chinese market. Huang highlighted Nvidia’s historical contributions to China but acknowledged broader strategic considerations. He mentioned US export controls, a reported agreement with President Trump, and an anti-monopoly investigation. Nvidia remains committed to both governments while navigating geopolitical complexities and investing in international partnerships, particularly in the UK’s AI infrastructure.

Alibaba’s shares rose after reports of a deal with China Unicom to use its AI chips, boosting China’s domestic semiconductor efforts. China Unicom will deploy Alibaba’s Pingtouge AI accelerators for a large-scale data center project, also using chips from MetaX and Biren. This move aligns with China’s push for self-reliance amidst geopolitical tensions and export restrictions on advanced AI chips, particularly as Nvidia faces regulatory hurdles. Alibaba is developing new AI chips and operates a major cloud platform, further emphasizing its role in China’s AI landscape.

Broadcom’s stock surged after announcing a $10 billion commitment from a new customer, widely speculated to be OpenAI for custom AI chips (XPUs). CEO Hock Tan highlighted the order’s impact on Broadcom’s AI revenue forecast, with shipments expected in 2026. Analysts believe the partnership will optimize OpenAI’s AI models and strengthen Broadcom’s position in the AI market, where it competes with Nvidia. Broadcom’s Q3 results exceeded expectations, with projected Q4 revenue reaching $17.4 billion.

Nvidia CEO Jensen Huang suggests a possible introduction of the Blackwell processor to China, advocating for eased U.S. restrictions. He anticipates a robust 50% growth in China’s AI market. Huang previously sought export licenses for the H20 chip, reaching an agreement involving revenue sharing with the U.S. government. Nvidia may need to modify Blackwell chips to comply with export rules, balancing cutting-edge technology deployment with national security. Despite uncertainties, Nvidia projects strong revenue, highlighting China’s $50 billion potential market value.

Cambricon, a Chinese semiconductor firm, reported significant revenue and profit growth in the first half of the year, driven by the increasing demand for AI chips. This surge reflects China’s strategic push for domestic AI chip alternatives to Nvidia amidst potential US export restrictions. While Nvidia still dwarfs Cambricon in overall revenue, the Chinese government’s support and diversified sourcing strategies are boosting Cambricon’s prospects. The company is focused on improving its software to compete more effectively. However, export controls pose a challenge to long-term technological advancement.

Cambricon, a Chinese AI chip company, has received approval from the Shanghai Stock Exchange for a RMB 4 billion private placement. The funds will be used for AI chip and software platform development, particularly for large-scale AI models, and to supplement working capital. Cambricon’s Q1 2025 revenue surged by 4230.22% year-on-year, with net profit also significantly increasing. The company focuses on cloud, edge products, and IP licensing, aiming to build a comprehensive AI ecosystem.

Nvidia and AMD have agreed to remit 15% of their AI chip sales revenue in China to the U.S. government in exchange for export licenses. The White House confirmed the arrangement, initiated by the Trump administration, aims to reduce U.S. national debt, which exceeds $37 trillion. Nvidia’s H20 chip is currently the primary product affected. The Treasury Secretary sees this as mutually beneficial, allowing Nvidia to maintain its Chinese market presence while benefiting American taxpayers. This agreement may extend to other companies and sectors in the future.