US Escalates AI Chip War: Global Ban on Huawei's Ascend Processors Sparks International Tension

US warns companies around the world to stay away from Huawei chips

President Donald Trump's administration has taken a tougher stance on Chinese technology advances, warning companies around the world that using artificial intelligence chips made by Huawei could trigger criminal penalties for violating US export controls. The commerce department issued guidance to clarify that Huawei's Ascend processors were subject to export controls because they almost certainly contained, or were made with, US technology. Its Bureau of Industry and Security, which oversees export controls, said on Tuesday it was taking a more stringent approach to foreign AI chips, including "issuing guidance that using Huawei Ascend chips anywhere in the world violates US export controls." But people familiar with the matter stressed that the bureau had not issued a new rule, but was making it clear to companies that Huawei chips are likely to have violated a measure that requires hard-to-get licences to export US technology to the Chinese company. "The guidance is not a new control, but rather a public confirmation of an interpretation that even the mere use anywhere by anyone of a Huawei-designed advanced computing [integrated circuit] would violate export control rules," said Kevin Wolf, a veteran export control lawyer at Akin Gump. The bureau said three Huawei Ascend chips -- the 910B, 910C and 910D -- were subject to the regulations, noting that such chips are likely to have been "designed with certain US software or technology or produced with semiconductor manufacturing equipment that is the direct produce of certain US-origin software or technology, or both." The guidance comes as the US has become increasingly concerned at the speed at which Huawei has developed advanced chips and other AI hardware. Huawei has begun delivering AI chip "clusters" to clients in China that it claims outperform the leading US AI chipmaker Nvidia's comparable product, on key metrics such as total compute and memory. The system relies on a large number of 910C chips, which individually fall short of Nvidia's most advanced offering, but collectively deliver superior performance to a rival Nvidia cluster product. The Shenzhen-based conglomerate currently offers its Ascend series processors, mainly the 910B and 910C, to Chinese companies. Huawei is boosting production capacity by building its own advanced semiconductor production lines, as Chinese companies cut off from Nvidia's products are increasing orders. There is growing US concern that China's national champion will soon be selling AI processors in both China and foreign markets that can compete with Nvidia and other US companies' products. Nvidia chief Jensen Huang said last month Huawei was "one of the most formidable technology companies in the world" and US policies should help his company compete on the global stage. Nvidia declined to comment on the bureau's new rules. Huawei did not immediately respond to a request for comment. The commerce department also rescinded the AI Diffusion Rule on Tuesday, a measure the previous Biden administration had planned would take effect on May 15. It was designed to limit exports of AI chips to other countries and make it harder for China to circumvent existing US export controls. But the department said the rule was too bureaucratic -- a view former Biden officials reject -- and it would issue a replacement in the future. The announcement came on the day Trump visited Saudi Arabia, where he unveiled a raft of deals, including a commitment by the kingdom's new state-owned AI company, Humain, to build AI infrastructure using hundreds of thousands of Nvidia chips. A source familiar with the situation said the scale of the proposed Gulf deals shocked many senior Trump administration officials. They were concerned about offshoring large-scale AI infrastructure, and also turning a blind eye towards Saudi and the United Arab Emirates' collaborations with Beijing. Additional reporting by Michael Acton in San Francisco. © 2025 The Financial Times Ltd. All rights reserved Not to be redistributed, copied, or modified in any way.

U.S. issues worldwide crackdown on using Huawei Ascend chips, says it violates export controls

Breaching US rules could incur fines, revocation of export rights, or even incarceration The U.S. government has announced new guidance that states that using Huawei Ascend chips anywhere in the world violates U.S. export controls. This week, the Commerce Department not only rescinded the AI Diffusion Rule, but also issued guidance prohibiting usage of Huawei's Ascend accelerators. The move comes amidst anxiety from Nvidia that restricting the sale of American AI processors to other countries could lead to the rise of Chinese AI platforms filling the void. The formal reason for the U.S. DoC's banning of Ascend usage around the world is simple: these processors were allegedly developed and made using American technologies illegally. Therefore, any person or business involved in the usage of these components (including for research purposes) without prior authorization could be subject to legal consequences. These may include criminal charges, administrative penalties, monetary fines, revocation of export rights, and incarceration. Given the current market situation, the new restriction is meant to show how far the U.S. government will go to protect American companies from their rivals in China. "Such chips likely are either designed with certain U.S. software or technology or produced with semiconductor manufacturing equipment that is the direct product of certain U.S.-origin software or technology, or both," a statement by the U.S. Commerce Department's Bureau of Industry and Security reads. "Additionally, such PRC 3A090 ICs may have been produced, purchased, or ordered by an entity listed on the Entity List or such entities were parties to the transaction. [...] Because there is a high probability that a BIS authorization was required for the export, reexport, transfer (in-country), or export from abroad of any PRC 3A090 IC or related technology, unless such authorization was obtained, the design or production of the PRC 3A090 IC likely involved one or more violations of the [U.S. export regulations]." There is an important thing to note about the Huawei processors in question. The Ascend 910B, Ascend 910C, and the upcoming Ascend 910D are banned, whereas the Ascend 910, which Huawei legally purchased from TSMC in 2019 - 2020 before ending up on the U.S. Entity List, can be used. Such processors are already used beyond China. For example, G42, a UAE-based AI company, used to work closely with Huawei and relied on its hardware. However, G42 later partnered with U.S.-based Cerebras and cut off ties with Huawei. Nvidia recognizes Huawei as a powerful opponent in the AI hardware sector as the company not only has rather powerful Ascend 910-series processors, but also highly-scalable rack-scale solutions (such as the CloudMatrix 384), something that its traditional rivals -- such as AMD and Intel -- lack. Furthermore, Huawei has its heterogeneous Compute Architecture for Neural Networks (CANN) platform that is meant to rival Nvidia's CUDA. Nvidia chief executive Jensen Huang warned that if U.S. companies are pulled out of certain markets (including Chinese and European), other players and platforms -- such as Huawei and CANN -- will fill the gap. He suggested that whoever sets the standard in AI technology will define the future landscape of the industry. However, it is extremely hard for blacklisted Huawei to replace Nvidia completely even in China as it is banned from using TSMC's advanced process technologies and has to use proxies to deceive the foundry and get chiplets for its Ascend-series processors. Last year, the company managed to illegally get enough silicon from TSMC to build a million of its Ascend 910C accelerators, but it can barely get enough chips to replace Nvidia in China. Although Huawei produces many of its AI accelerators at SMIC in China, it does not look like this foundry can make enough sophisticated chips for the high-tech giant to a large degree because of the U.S. sanctions and inability to get enough advanced fab tools, which is why Huawei is investing billions in building domestic chipmaking equipment. The new rule targeting Huawei (and its Ascend + CANN platform) came a day after a significant step toward easing the trade war between the U.S. and China. The two countries had announced a temporary suspension of certain import tariffs for a 90-day period, a move interpreted as progress in trade negotiations. However, it is evident that the U.S. wants to ensure AI leadership no matter what. The severe action against Huawei is meant to show this, even despite the fact that Huawei's expansion beyond China is close to impossible unless it gets access to sufficient chipmaking capacity. Huawei is in a unique position. On the one hand, it can challenge Nvidia in terms of technologies. On the other hand, it cannot challenge Nvidia in terms of volume. However, Huawei is not alone. There are also Biren Technology, InnoSilicon, and Moore Threads, companies that develop GPUs based on the architecture. This was originally developed by Imagination Technologies, and lead by highly experienced executives from AMD, Nvidia, and Huawei, who know how to build advanced processors. For now, none of the three can compete against Nvidia's CUDA, or Huawei's CANN. Furthermore, Biren and Moore Threads are on the Entity List, so they do not have access to TSMC and other companies that use American Technologies. However, all three companies are developing, and eventually could threaten U.S. dominance in some segments of the AI market. Now, the question is, will the U.S. government go on as far as restricting usage of all Chinese AI processors that are potentially developed and made using American technologies without authorization across the world to protect Nvidia and other American companies?

US Warns That Using Huawei AI Chip 'Anywhere' Breaks Its Rules

The Commerce Department issued guidance stating that the use of Huawei Technologies Co.'s Ascend artificial intelligence chips "anywhere in the world" violates the government's export controls, escalating US efforts to curb technological advances in China. The agency's Bureau of Industry and Security is also planning to warn the public about "the potential consequences of allowing US AI chips to be used for training and inference of Chinese AI models." The guidance is designed to strengthen export controls on the hardware, the agency said in a statement Tuesday.

China Accuses US of Undermining Trade Talks With Warnings Against Huawei Chips

The Chinese government accused the Trump administration of undermining recent trade talks in Geneva with its warning that using Huawei Technologies Co.'s artificial-intelligence chips "anywhere in the world" would violate US export controls. The Commerce Department had said in a statement last week that it was issuing guidance to make clear that the use of Huawei Ascend chips is a breach of the US government's export controls. The agency said at the time that it would also warn the public about "the potential consequences of allowing US AI chips to be used for training and inference of Chinese AI models."

China Accuses US of 'Unilateral Bullying' on Huawei AI Chips

Beijing has pushed back against a US decision aimed at curbing Chinese-made artificial intelligence chips, a first sign of discord between the world's two largest economies since they agreed to a trade truce last weekend. In a reminder of the tensions that continue to exist between the Trump administration and China when it comes to technology, the Commerce Department said earlier this week it would issue guidance to make clear that using Huawei Technologies Co.'s Ascend AI chips "anywhere in the world violates US export controls."

China accuses US of 'abusing' export control measures in Huawei AI chip curb

BEIJING, May 15 (Reuters) - China on Thursday accused the United States of "abusing export control measures" and urged Washington to correct its practices after the U.S. issued guidance warning companies not to use Huawei's Ascend AI chips. The guidance threatens the stability of global semiconductor supply chains, Chinese commerce ministry spokesperson He Yongqian told a regular press conference, adding that China will take steps to defend Chinese enterprise's legitimate rights and interests. On Tuesday, the U.S. Commerce Department's Bureau of Industry and Security published guidance warning that companies risked violating U.S. export controls by using Huawei's Ascend AI chips, the Shenzhen-based tech company's most advanced semiconductor series. Huawei's AI chips compete with those of U.S. giant Nvidia for Chinese market share. Reporting by Joe Cash and Beijing Newsroom; Editing by Aidan Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Media & Telecom

US warns against using Huawei chips 'anywhere in the world'

President Donald Trump's administration has taken a tougher stance on Chinese technology advances, warning companies around the world that using artificial intelligence chips made by Huawei could trigger criminal penalties for violating US export controls. The commerce department issued guidance to clarify that Huawei's Ascend processors were subject to export controls because they almost certainly contained, or were made with, US technology. Its Bureau of Industry and Security, which oversees export controls, said on Tuesday it was announcing strengthened rules for foreign AI chips, including "issuing guidance that using Huawei Ascend chips anywhere in the world violates US export controls". People familiar with the matter stressed that the bureau had not issued a new rule, but was making it clear to companies that Huawei chips are likely to have violated a measure that requires hard-to-get licences to export US technology to the Chinese company. "The guidance is not a new control, but rather a public confirmation of an interpretation that even the mere use anywhere by anyone of a Huawei-designed advanced computing [integrated circuit] would violate export control rules," said Kevin Wolf, a veteran export control lawyer at Akin Gump. The bureau said three Huawei Ascend chips -- the 910B, 910C and 910D -- were subject to the regulations, noting that such chips are likely to have been "designed with certain US software or technology or produced with semiconductor manufacturing equipment that is the direct produce of certain US-origin software or technology, or both". The guidance comes as the US has becoming increasingly concerned at the speed at which Huawei has developed advanced chips and other AI hardware. Huawei has begun delivering AI chip "clusters" to clients in China that it claims outperform the leading US AI chipmaker Nvidia's comparable product, on key metrics such as total compute and memory. The system relies on a large number of 910C chips, which individually fall short of Nvidia's most advanced offering, but collectively deliver superior performance to a rival Nvidia cluster product. The Shenzhen-based conglomerate currently offers its Ascend series processors, mainly the 910B and 910C, to Chinese companies. Huawei is boosting production capacity by building its own advanced semiconductor production lines, as Chinese companies cut off from Nvidia's products are increasing orders. There is growing US concern that China's national champion will soon be selling AI processors in both China and foreign markets that can compete with Nvidia and other US companies' products. Nvidia chief Jensen Huang said last month Huawei was "one of the most formidable technology companies in the world" and US policies should help his company compete on the global stage. Nvidia declined to comment on the bureau's new rules. Huawei did not immediately respond to a request for comment. The commerce department also rescinded the AI Diffusion Rule on Tuesday, a measure the previous Biden administration had planned would take effect on May 15. It was designed to limit exports of AI chips to other countries and make it harder for China to circumvent existing US export controls. But the department said the rule was too bureaucratic -- a view former Biden officials reject -- and it would issue a replacement in the future. The announcement came on the day Trump visited Saudi Arabia, where he unveiled a raft of deals, including a commitment by the kingdom's new state-owned AI company, Humain, to build AI infrastructure using hundreds of thousands of Nvidia chips. A source familiar with the situation said the scale of the proposed Gulf deals shocked many senior Trump administration officials. They were concerned about offshoring large-scale AI infrastructure, and also turning a blind eye towards Saudi and the United Arab Emirates' collaborations with Beijing.

Using Huawei AI Chips Could Lead to Criminal Charges, US Warns | AIM

The US government believes that Huawei's Ascend processors were manufactured using US technologies and curbs further consumption of Chinese AI chips. US President Donald Trump's administration has further cracked down on Chinese technology giants, issuing warnings against the consumption of Chinese AI chips, leading to criminal penalties under the US export control laws. The Bureau of Industry and Security (BIS) said in a statement that on 13 May, the Department of Commerce (DOC) rescinded former US President Biden's AI Diffusion Rule and announced additional steps to "strengthen export controls on semiconductors" globally. The AI Diffusion Rule, which was issued in January 2025, had compliance requirements set to take effect on May 15, 2025. As per BIS, the AI Diffusion Rule could have damaged US diplomatic relationships with several countries by reducing their status to second-tier. Under Secretary of Commerce for Industry and Security Jeffery Kessler said the Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries worldwide while keeping the technology out of the hands of our adversaries. "We reject the Biden Administration's attempt to impose its own ill-conceived and counterproductive AI policies on the American people," Kessler said. The guidance released by the Bureau of Industry and Security (BIS) of the US Department of Commerce specified that Huawei's Ascend processors, namely the 910B, 910C, and 910D, are subject to stringent export restrictions due to suspicions that they are created or produced utilising technology from the US. As reported earlier by AIM, Huawei contacted various tech companies late last month to prepare to test its new AI chip, the Ascend 910D, in China. The move came as Huawei sought to replace some of NVIDIA's high-end processors following Washington's tightening of semiconductor export restrictions to China. The BIS also announced that it intends to alert the public regarding the possible repercussions of permitting US AI chips to be utilised for training and inference of Chinese AI models. The guidance from the Commerce Department is expected to complicate Huawei's efforts to create more advanced chips for AI and smartphones further, which are initiatives that have already faced significant obstacles due to US sanctions. As Bloomberg reported, the Trump administration imposed restrictions on Huawei Technologies in 2019 due to espionage worries, nearly destroying the Chinese firm's chip market. However, it recovered with backing from the Chinese government and is now a key player in the country's initiatives to attain technological self-sufficiency away from Western influence.

China slams US 'bullying' over new warnings on Huawei chips

Beijing has strongly condemned the recent US warnings regarding the use of AI chips manufactured by Huawei, labeling them as acts of bullying and protectionism. China vows to take firm steps to protect its interests against restrictions on high-tech semiconductors and supply chains.Beijing condemned on Wednesday new US warnings on the use of AI chips by Chinese tech giant Huawei, vowing it would take steps against "bullying" efforts to restrict access to high-tech semiconductors and supply chains. Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI. US President Donald Trump's administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence. Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology. But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls. In a statement Wednesday, Beijing's commerce ministry described the warnings as "typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain". China accused the US of "abusing export controls to suppress and contain China". "These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," the commerce ministry said. It also warned that "any organization or individual that enforces or assists in enforcing such measures" could be in violation of Chinese law. And it vowed to take "firm steps to safeguard its legitimate rights and interests" in response. - Chips on the table - The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models. And those found using Huawei's Ascend chips without clearance from Washington, the guidance read, can face "substantial criminal and administrative penalties, up to and including imprisonment, fines, loss of export privileges, or other restriction". The US commerce department said its policy was aimed at sharing American AI technology "with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries". Previous US rules divided countries into three tiers, each with its own level of restrictions. Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive. Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule. Speaking at Taiwan's top tech show on Wednesday, Nvidia CEO Jensen Huang described US export controls on AI chips to China as a "failure", since companies are using locally developed technology. "The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development," Huang said.

China says U.S. warnings on Huawei chips undermine their recent trade talks

The Chinese government has accused U.S. President Donald Trump's administration of undermining recent trade talks in Geneva with its warning that using Huawei Technologies' artificial intelligence chips "anywhere in the world" would violate U.S. export controls. The U.S. Commerce Department had said in a statement last week that it was issuing guidance to make clear that the use of Huawei Ascend chips is a breach of the U.S. government's export controls. The agency said at the time that it would also warn the public about "the potential consequences of allowing U.S. AI chips to be used for training and inference of Chinese AI models." The department's statement has since changed to say that the agency was issuing guidance about "the risks of using PRC advanced computing ICs, including specific Huawei Ascend chips," stripping the "anywhere in the world" reference. PRC is the abbreviation for China's formal name, the People's Republic of China, while ICs refers to integrated circuits, or chips.

China accuses US of 'abusing' export control measures in Huawei AI chip curb

BEIJING (Reuters) -China on Thursday accused the United States of "abusing export control measures" and urged Washington to correct its practices after the U.S. issued guidance warning companies not to use Huawei's Ascend AI chips. The guidance threatens the stability of global semiconductor supply chains, Chinese commerce ministry spokesperson He Yongqian told a regular press conference, adding that China will take steps to defend Chinese enterprise's legitimate rights and interests. On Tuesday, the U.S. Commerce Department's Bureau of Industry and Security published guidance warning that companies risked violating U.S. export controls by using Huawei's Ascend AI chips, the Shenzhen-based tech company's most advanced semiconductor series. Huawei's AI chips compete with those of U.S. giant Nvidia for Chinese market share. (Reporting by Joe Cash and Beijing Newsroom; Editing by Aidan Lewis)