TechInsights, a renowned technology analysis company, recently conducted an investigation that revealed Huawei’s latest AI offering uses an advanced processor made by Nvidia Corp.’s manufacturing partner, Taiwan Semiconductor Manufacturing Co. (TSMC). This discovery suggests that China is encountering challenges in producing its own advanced chips in sufficient quantities.

Digging further, TechInsights found that the TSMC-manufactured Ascend 910B chip was hidden within one of Huawei’s high-end AI accelerators. The Ascend 910B chip is one of the most powerful AI processors in the world, capable of handling heavy workloads with ease. This revelation is indeed surprising as Huawei, being on the US sanctions list since August 2020, is not permitted to conduct business with TSMC and its counterparts without a US government license.

Because of these sanctions, Huawei has predominantly relied on its local partner, Semiconductor Manufacturing International Corp. (SMIC), for production. However, doubts have arisen regarding SMIC’s ability to mass-produce 7-nm chips, a fact underlined by Huawei’s continued reliance on TSMC’s output for its recent AI chips.

In response to these findings, both TSMC and Huawei confirmed that all shipments to Huawei ceased after September 2020 in compliance with US regulatory requirements. Despite this, TechInsights’ teardown report raised concerns about Huawei potentially violating US sanctions through the employment of TSMC-produced components in its Ascend 910B AI processor.

Despite the looming threat of sanctions, Huawei appears resilient and is focusing on self-sufficiency in chip production. Huawei is providing AI chips to Chinese customers as a powerful alternative to Nvidia. This move underscores Huawei’s determination to elevate its technological prowess in spite of the geopolitical challenges it faces.

In addition to AI chips, Huawei has also made significant advances in smartphone technology. The company has designed a 7-nanometre chip for its Mate 60 and Pura 70 series devices, manufactured by China’s top chip maker, SMIC. This is a significant achievement for Huawei and a testament to its relentless pursuit of technological innovation in the face of adversity.

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