Huawei's Ascend 910C AI Chip Achieves Breakthrough in Yield Rates, Challenging NVIDIA's Dominance

Curated by THEOUTPOST

On Wed, 26 Feb, 12:03 AM UTC

3 Sources

Share

Huawei's Ascend 910C AI chip has reportedly achieved yield rates of up to 40%, signaling a significant advancement in China's AI chip production capabilities and potentially challenging NVIDIA's market leadership.

Huawei's Ascend 910C Achieves Significant Yield Rate Improvement

Huawei Technologies Co. has made a substantial breakthrough in the production of its advanced artificial intelligence chips. The Chinese tech giant has reportedly increased the yield rate of its latest Ascend 910C AI processors to approximately 40%, doubling from 20% a year ago 12. This improvement marks a significant milestone for Huawei and China's semiconductor industry, potentially challenging the dominance of U.S. chipmaker NVIDIA in the AI chip market.

Production Plans and Market Impact

With the improved yield rates, Huawei's Ascend chip production line has become profitable for the first time 2. The company aims to further increase yields to 60%, aligning with industry standards for similar chips. Huawei has ambitious production plans for 2025, targeting the manufacture of 100,000 910C processors and 300,000 910B chips 12. This production scale could position Huawei as a formidable competitor to NVIDIA, especially in the Chinese market.

Technological Advancements and Challenges

The Ascend 910C is reported to offer performance comparable to NVIDIA's H100 AI GPU 1. However, Huawei faces challenges in competing with NVIDIA's CUDA software, which is known for its ease of use and faster data processing capabilities 2. To address this, Huawei is developing its in-house CANN software and working with partners to resolve software bugs and increase memory capacity in the 910C series 12.

Geopolitical Context and Industry Impact

Huawei's progress comes amid ongoing U.S. export controls designed to limit China's access to advanced semiconductor technologies. The company has partnered with Semiconductor Manufacturing International Corp (SMIC) to produce its Ascend chips, using SMIC's N+2 process 2. This collaboration is crucial for China's goal of achieving independence in advanced chip production, especially after Taiwan Semiconductor Manufacturing Company (TSMC) was forced to stop making chips for Huawei in 2020 due to U.S. restrictions 23.

Market Dynamics and Future Outlook

Despite Huawei's advancements, NVIDIA remains the market leader in China's AI chip sector. NVIDIA reportedly sold approximately 1 million H20 chips to China in 2023, generating an estimated $12 billion in revenue 2. However, Huawei's progress positions it as a frontrunner to challenge NVIDIA, particularly in the market for inference chips used to run AI models post-training 2.

Huawei currently accounts for over three-quarters of the overall AI chip output in China 2. The Chinese government is actively encouraging local tech companies to shift towards Huawei's AI chips and reduce reliance on NVIDIA 3. This support, combined with Huawei's technological advancements, could reshape the AI chip landscape in China and potentially impact the global market in the coming years.

Continue Reading
Huawei's Ascend 910C Challenges Nvidia's AI Dominance with

Huawei's Ascend 910C Challenges Nvidia's AI Dominance with 60% H100 Inference Performance

Huawei's Ascend 910C AI chip, developed under US sanctions, achieves 60% of Nvidia H100's inference performance. This breakthrough could reduce China's reliance on US tech and disrupt the global AI hardware market.

Dataconomy logoWccftech logoTom's Hardware logo

4 Sources

Dataconomy logoWccftech logoTom's Hardware logo

4 Sources

Huawei Challenges NVIDIA's GPU Dominance in China with New

Huawei Challenges NVIDIA's GPU Dominance in China with New AI Chip

Huawei has begun sampling its new Ascend 910C AI chip to major Chinese tech companies, positioning itself as a potential alternative to NVIDIA in the face of US trade restrictions. This move signals China's push for technological self-reliance in the AI chip market.

Interesting Engineering logoTweakTown logoTom's Hardware logoWccftech logo

5 Sources

Interesting Engineering logoTweakTown logoTom's Hardware logoWccftech logo

5 Sources

Huawei's AI Chip Ambitions Stalled by US Sanctions, Mass

Huawei's AI Chip Ambitions Stalled by US Sanctions, Mass Production Planned for 2025

Huawei faces significant challenges in advancing its AI chip technology due to US sanctions, forcing it to rely on older 7nm architecture. Despite obstacles, the company aims to mass-produce its newest AI chip by early 2025.

Economic Times logoFortune logoTom's Hardware logoBenzinga logo

8 Sources

Economic Times logoFortune logoTom's Hardware logoBenzinga logo

8 Sources

Huawei Prepares to Challenge Nvidia with New AI Chip Amid

Huawei Prepares to Challenge Nvidia with New AI Chip Amid US Sanctions

Chinese tech giant Huawei is set to release a new artificial intelligence chip, aiming to compete with Nvidia in the Chinese market. This move comes as Huawei navigates US sanctions and seeks to establish itself in the AI hardware sector.

CNBC logoZawya.com logoMarket Screener logomint logo

7 Sources

CNBC logoZawya.com logoMarket Screener logomint logo

7 Sources

Huawei Challenges Nvidia's AI Chip Dominance in China,

Huawei Challenges Nvidia's AI Chip Dominance in China, Focusing on Inference Tasks

Huawei is making strategic moves to capture a larger share of China's AI chip market, currently dominated by Nvidia. The company is focusing on inference tasks and helping local firms adapt Nvidia-trained AI models to run on Huawei's Ascend chips.

Financial Times News logoBenzinga logo

2 Sources

Financial Times News logoBenzinga logo

2 Sources

TheOutpost.ai

Your one-stop AI hub

The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.

© 2025 TheOutpost.AI All rights reserved