Huawei to Double High-End AI Chip Production
Huawei is set to double production of its top-end AI chips in 2026, according to a Bloomberg report. The move signals a major push for self-sufficiency and vertical integration amid ongoing U.S. trade restrictions. This scaling effort poses a significant competitive challenge to Western chipmakers, particularly in the Asian market.
The production increase centers on Huawei's Ascend series AI chips, primarily manufactured by China's top foundry, Semiconductor Manufacturing International Corp. (SMIC). The goal is to produce approximately 600,000 units of its high-end Ascend 910C chip in 2026, with total Ascend die production potentially reaching 1.6 million. This ramp-up is a direct challenge to Nvidia, whose AI processor market share in China is forecast to fall from 66% in 2024 to just 8% by 2026. Conversely, analysts project Huawei could capture as much as 50% of the domestic AI chip market in the same timeframe. U.S. export controls block SMIC from acquiring the most advanced extreme ultraviolet (EUV) lithography machines needed for cutting-edge chipmaking. As a result, SMIC is forced to use older deep ultraviolet (DUV) equipment with more complex, lower-yield multi-patterning techniques to produce these 7nm and even 5nm-class processors.
