NVIDIA shares fell 5.6% after news that Huawei plans to ship its Ascend 910C AI chip. This comes as the Trump administration recently made NVIDIA need a license to sell H20 AI GPUs to China. These restrictions limit Chinese companies from accessing top AI tech for their software. Huawei's new chip upgrades its previous design rather than being completely new.
Sources say Huawei's Ascend 910C performs similar to NVIDIA's H100 chip. NVIDIA has faced market pressure since the DeepSeek selloff erased about $600 billion in value. CEO Jensen Huang mentioned they would create a new chip following the rules, but Huawei isn't waiting. Reports suggest China might produce up to one million of these GPUs if manufacturing goes perfectly.
The Ascend chips use dies made by Taiwan Semiconductor Manufacturing Company, though TSMC claims it stopped shipping to Huawei in 2020. The US government is looking into products from a Chinese company called Sophia that may contain TSMC parts reaching Huawei. China's main chip maker, SMIC, struggles with US restrictions, stuck using older 7-nanometer technology for manufacturing semiconductors.
Sources say Huawei's Ascend 910C performs similar to NVIDIA's H100 chip. NVIDIA has faced market pressure since the DeepSeek selloff erased about $600 billion in value. CEO Jensen Huang mentioned they would create a new chip following the rules, but Huawei isn't waiting. Reports suggest China might produce up to one million of these GPUs if manufacturing goes perfectly.
The Ascend chips use dies made by Taiwan Semiconductor Manufacturing Company, though TSMC claims it stopped shipping to Huawei in 2020. The US government is looking into products from a Chinese company called Sophia that may contain TSMC parts reaching Huawei. China's main chip maker, SMIC, struggles with US restrictions, stuck using older 7-nanometer technology for manufacturing semiconductors.
