Huawei ramps up chip manufacturing, set to rival Nvidia's market dominance

Huawei, Chinese technology giant, is getting ready to significantly boost manufacturing of its cutting-edge artificial intelligence processors, positioning itself to capture more market share as American rival Nvidia faces regulatory obstacles in the ￰0￱ to sources with knowledge of internal plans, Huawei Technologies ￰1￱ to manufacture approximately 600,000 units of its flagship 910C Ascend processor in the coming ￰2￱ figure represents twice the volume produced during the current ￰3￱ company encountered difficulties delivering these products throughout much of 2025 due to American trade ￰4￱ Shenzhen-headquartered firm will increase overall production for its Ascend lineup to as many as 1.6 million dies in 2026, the sources ￰5￱ are the fundamental silicon pieces containing chip ￰6￱ reaching these production goals would mark a significant technical achievement for the company, considered China’s primary hope for reducing dependence on foreign processors that drive the nation’s ￰7￱ figures indicate that Huawei and its key manufacturing ally, Semiconductor Manufacturing International Corp., have discovered methods to address bottlenecks that previously hampered both its AI operations and Beijing’s technology independence ￰8￱ 2025 and 2026 estimates include dies currently in stock and internal calculations of production failure rates, Bloomberg’s sources ￰9￱ for AI processors remains substantial across China Companies ranging from Alibaba Group Holding ￰10￱ DeepSeek require millions of these chips to build and run AI ￰11￱ reportedly sold roughly a million H20 chips during 2024 ￰12￱ September, Huawei broke from its usual practice of secrecy by publicly announcing a three-year strategy for challenging Nvidia’s market ￰13￱ Chairman Eric Xu presented multiple Ascend processors, the 950, 960, and 970 models, scheduled for gradual introduction through ￰14￱ represent the next generation following the years-old 910 series, which currently generates the bulk of Huawei spearheads a group of Chinese chip manufacturers rushing to create accelerators while Nvidia remains largely excluded from the market through government ￰15￱ has blocked or discouraged domestic companies from purchasing Nvidia products over security ￰16￱ co-founder Jensen Huang has attempted to convince Chinese buyers that his products pose no security threat, though it remains uncertain whether this situation will ￰17￱ its latest earnings report, the company disclosed zero sales of the H20, a version designed specifically for China, in the most recent ￰18￱ Cryptopolitan reported earlier, China’s Baidu and Alibaba have also dumped Nvidia for domestically developed ￰19￱ challenges remain despite summer progress While some reports suggest Chinese companies plan to triple overall semiconductor output next year, sources described this goal as ￰20￱ yields, meaning the percentage of usable chips coming off assembly lines, remain disappointing.

Huawei’s current leading AI processor combines two dies into a single chipset, an advanced packaging technique that theoretically increases power. However, this process presents challenges and partly explains ongoing supply shortages that have allowed competitors like Cambricon Technologies ￰21￱ fill the gap, sources explained. Nevertheless, Huawei achieved meaningful output improvements during the summer months, sources ￰22￱ months have shown evidence of Chinese firms, including Shanghai Micro Electronics Equipment Group Co., making substantial progress in equipment ￰23￱ now plans to introduce a chip following the 910C, initially called the 910D by industry observers, in late 2026, sources ￰24￱ company aims for 100,000 units of this new chipset, featuring a more ambitious design packing four dies into one ￰25￱ this month, Huawei announced plans for a late-2026 release of what it calls the 950DT.

Altogether, Huawei will distribute roughly 1.6 million dies across two chip types next year, compared to up to 1 million dies in 2025, sources ￰26￱ this year, Huawei informed customers it could sell 200,000 Ascend 910Cs by year’s end, plus about 100,000 units set aside for its own cloud computing division and possibly some government-connected ￰27￱ seen where it ￰28￱ in Cryptopolitan Research and reach crypto’s sharpest investors and builders.