The United States has been limiting the sale of advanced AI chips to China, making it difficult for Chinese companies to get their hands on the latest technology. In response, NVIDIA, the world’s biggest AI chip maker, has been selling a weaker version of its powerful H100 chip, called the H20, to China. But now, Huawei, a major Chinese tech company, is stepping up with its own high-performance AI chip, the Ascend 910C, which is said to be just as good as NVIDIA’s H100. Reports suggest that Huawei will start sending these chips to Chinese customers as early as May 2025.

Why is This Happening?

The US government has strict rules on selling advanced technology to China, especially when it comes to AI chips. These chips are crucial for artificial intelligence tasks, like training smart programs and running big data centers. Since China can’t easily buy the best chips from the US, companies like Huawei are making their own. Recently, the US even said that NVIDIA’s H20 chip, which was specially made for China, would need a special license to be sold there. This has left Chinese companies scrambling for alternatives.

Huawei’s Solution: The Ascend 910C

According to Reuters, a person who knows about Huawei’s plans said the company is getting ready to produce and ship the Ascend 910C in large numbers. Some of these chips have already been sent out to customers. The Ascend 910C is not a completely new design but is an improved version of Huawei’s earlier chip, the Ascend 910B. Instead of making a brand-new chip, Huawei combined two Ascend 910B chips into one package, boosting its performance to match NVIDIA’s H100.

This is a smart move because designing a whole new chip from scratch takes a lot of time and money. By upgrading an existing model, Huawei can quickly provide a strong alternative to NVIDIA’s products. This is especially important for China, which relies on AI technology for everything from self-driving cars to medical research.

How Does This Affect NVIDIA?

NVIDIA has been the top player in AI chips for years, but with US restrictions, its business in China is shrinking. The H20, which was supposed to be a solution for the Chinese market, is now facing more hurdles. If Huawei’s Ascend 910C works as well as promised, Chinese companies might start buying from Huawei instead of NVIDIA. This could hurt NVIDIA’s sales and give Huawei a bigger role in the global AI chip market.

What’s Next for China’s AI Industry?

China has been investing heavily in its own technology to reduce dependence on foreign companies. With Huawei leading the way, other Chinese firms might also start developing their own AI chips. This could lead to more competition in the tech world, with China creating its own advanced chips instead of relying on US-made ones.

However, making high-end chips is not easy. It requires cutting-edge factories and years of research. Huawei has made big progress, but it still faces challenges in matching the quality and efficiency of top US chipmakers like NVIDIA and Intel. Still, the Ascend 910C is a big step forward for China’s tech independence.

The battle over AI chips is heating up between the US and China. With the US tightening export controls, Chinese companies like Huawei are finding ways to make their own advanced technology. The Ascend 910C could be a game-changer, giving China a strong alternative to NVIDIA’s chips. If successful, this could shift the balance of power in the tech industry, making China less reliant on foreign technology.

For now, all eyes are on Huawei as it prepares to ship its new AI chip. If the Ascend 910C performs as expected, it could mark the beginning of a new era in China’s tech industry—one where it no longer has to depend on the West for critical components.