Huawei's AI Chip Production Push: A Threat to Nvidia's Dominance in China

Huawei is preparing to deliver 600,000 units of its Ascend 910C chip in 2026, doubling this year's level, and lift overall output across its Ascend family to 1.6 million dies. This could reshape Huawei's role in the global semiconductor race and position it as China's most credible alternative supplier to Nvidia in a restricted domestic market. Despite lags in chip performance, Huawei is betting on scale and system-level integration to compete in AI hardware.

Huawei is set to significantly ramp up production of its Ascend 910C AI chips, aiming to deliver 600,000 units in 2026, nearly doubling this year's output. This ambitious plan, coupled with an overall increase in output across its Ascend family to 1.6 million dies, positions Huawei as a credible alternative to Nvidia in China's restricted domestic market Huawei plans 600000 Ascend 910C chips by 2026 to block Nvidia in China^[1].

The move comes amidst geopolitical tensions and US sanctions that have hindered Huawei's ability to produce and distribute AI chips. However, Huawei is leveraging its partnership with Semiconductor Manufacturing International Corp. (SMIC) to overcome these challenges and boost its AI chip production. By utilizing existing inventory and improving production yields, Huawei aims to meet its targets and reduce its dependency on foreign chips Huawei to Double Output of Top AI Chip as Nvidia Wavers in China^[2].

While Huawei's AI chips currently lag behind Nvidia's in single-chip performance, the company is betting on scale and system-level integration to compete in the AI hardware market. Huawei's strategy involves linking multiple Ascend-branded AI chips using its self-developed UnifiedBus interconnect protocol, a technology formally unveiled this month Huawei to Double Output of Top AI Chip as Nvidia Wavers in China^[2].

Huawei's three-year AI chip roadmap, which includes the upcoming Ascend 950 and 960 chips, further demonstrates its commitment to challenging Nvidia's dominance. The company is targeting a late-2026 release for the Ascend 950 and plans to introduce the 960 chip in 2027 Huawei to Double Output of Top AI Chip as Nvidia Wavers in China^[2].

Despite these advancements, Huawei faces technical challenges in manufacturing, particularly in producing dies using aging 7-nanometer technology. However, the company is exploring a revamped next-generation Ascend chip that could be powerful enough to train AI algorithms, not just operate them Huawei to Double Output of Top AI Chip as Nvidia Wavers in China^[2].

In conclusion, Huawei's ambitious AI chip production plan is a significant step towards reshaping its role in the global semiconductor race and positioning it as China's most credible alternative supplier to Nvidia. The company's focus on scale, system-level integration, and strategic partnerships highlights its determination to overcome the challenges posed by geopolitical tensions and US sanctions.