Huawei is expected to produce no more than 200,000 advanced AI chips in 2025, a top U.S. official told lawmakers on Thursday, warning that the Chinese company is still progressing fast despite export restrictions.
The chips, known as Ascend 910C, are seen as a local alternative to U.S.-made Nvidia processors.
Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, said most or all of the Huawei chips would be delivered to Chinese companies. He told the House Foreign Affairs subcommittee that while the production number seems low, it should not give a false sense of security because China is heavily investing in AI chip capabilities.
Huawei has been under U.S. export controls since 2019, which limit access to American chips and chipmaking tools. These restrictions aim to slow China’s military and tech advancements and have become a central issue in U.S.-China relations.
Huawei CEO Ren Zhengfei said earlier this week that the company’s chips are a generation behind U.S. products but that Huawei is investing over $25 billion each year to close the gap. White House AI adviser David Sacks said on Tuesday that China is three to six months behind the U.S. in AI models and one to two years behind in AI chips.
Nvidia remains ahead in AI chip power, but U.S. rules have restricted sales of its most advanced chips to China. As a result, it has lost some market share in the country.
This week, the U.S. and China reached a tentative trade agreement in London, following previous tensions over Chinese export curbs on key minerals. The Trump administration responded by applying more restrictions, including on semiconductor design software and jet engines for Chinese aircraft.
Kessler said there are no immediate plans for new chip-related restrictions, but that the Commerce Department will stay active as the global tech landscape keeps evolving.
