The US reignites tech war with Huawei as company unveils AI chip to rival Nvidia

The Trump administration has intensified its technological standoff with China following Huawei's announcement of its latest artificial intelligence (AI) processor, the Ascend 910D. This chip aims to compete directly with Nvidia's high-end offerings, such as the H100.

Huawei has already started testing the Ascend 910D with select Chinese tech firms and anticipates receiving initial samples by late May. Reports also reveal that mass production of the preceding 910C model will begin in June.

US Commerce Department's stance

In response, the US Department of Commerce has issued guidance asserting that the use of Huawei's Ascend AI chips globally could violate American export controls. The Bureau of Industry and Security emphasized that these chips likely incorporate US technology, making their use subject to stringent regulations.

This move underscores Washington's concern over Huawei's rapid advancements in AI chip technology, particularly as the company asserts its products outperform Nvidia’s in key performance areas.

Financial Times

Concurrently, the Trump administration has rescinded a Biden-era policy that aimed to restrict the export of advanced AI chips to numerous countries without prior federal approval. Criticized as "unworkable," the rule's withdrawal paves the way for a new, globally coordinated strategy to counter China's influence in the AI sector. This policy shift is expected to benefit major U.S. chip manufacturers, potentially boosting their international sales and market presence.

Huawei’s resilience

Huawei's Ascend 910D, developed by its semiconductor arm HiSilicon, is part of a broader effort to reduce reliance on foreign technology. The company has invested heavily in its chip development capabilities, aiming to create a self-sufficient semiconductor ecosystem. Despite facing U.S. sanctions, Huawei has made significant strides, with its Ascend series gaining traction in domestic markets.

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On its end, China has accused the United States of "abusing export control measures" and urged Washington to correct its practices.

Going forward

The escalating tech tensions have broader implications for global supply chains and international relations. As the US tightens export controls, China continues to push for technological self-reliance, potentially leading to a bifurcated global tech landscape. At the moment, the situation remains fluid, with both nations vying for dominance in critical technology sectors.