Huawei Seeks to Expand AI Chip Market in Middle East and Southeast Asia

Huawei's Strategic Move into New AI Chip Markets

Huawei Technologies Co., China's leading competitor to US chipmakers, is making a bold move to expand its artificial intelligence (AI) chip market presence in the Middle East and Southeast Asia. The company is attempting to export small quantities of AI chips to these regions, challenging the dominance of US chip designer Nvidia Corp 1

1

.

Target Markets and Product Offerings

Huawei has reached out to potential customers in the United Arab Emirates, Saudi Arabia, and Thailand, offering its older-generation Ascend 910B AI processors 2

2

. The company is proposing to supply these chips in quantities in the low thousands, although the exact numbers remain unclear. Additionally, Huawei is attempting to attract customers by offering remote access to CloudMatrix 384, a China-based AI system built with more advanced Huawei chips 3

3

.

Market Dynamics and Challenges

The Middle East has emerged as a booming market for AI chips, with several US technology firms, including Nvidia, announcing significant deals. Recently, the UAE and Saudi Arabia struck agreements for well over a million Nvidia and Advanced Micro Devices Inc. chips over several years 1

1

.

However, Huawei faces challenges in these new markets. No deals have been finalized yet, and parties in the UAE have not shown interest. The status of talks in Thailand remains unclear 4

4

.

US-China Tech Rivalry and Export Controls

Huawei's push into these markets comes amid ongoing US-China tech tensions. Successive US administrations have sought to restrict China's access to advanced American chip technology, citing concerns about potential military applications 2

2

.

These export controls have significantly impacted the competitive landscape. An Nvidia spokesperson stated, "With the current export controls, we are effectively out of the China datacenter market, which is now served only by competitors such as Huawei" .

Huawei's Domestic Strategy

While seeking new international markets, Huawei is also focusing on its domestic market. The company is selling its advanced AI chip product, the 910Cs, to Chinese firms that cannot access best-in-class American chips due to export restrictions 4

4

.

Future Implications

Huawei's efforts to expand its AI chip market presence in the Middle East and Southeast Asia could potentially reshape the global AI chip industry. If successful, it could challenge the current dominance of US companies in these regions and provide Huawei with new revenue streams amidst ongoing challenges in Western markets.