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US Maintains Chip Export Curbs as Huawei Ramps Up Domestic AI Production

Despite a tentative trade truce, Washington is preparing to enforce existing restrictions as Huawei invests over $25 billion each year to narrow a one-to-two-year gap with US chipmakers.

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. REUTERS/Gonzalo Fuentes/File Photo

Overview

  • The Commerce Department projects Huawei will produce no more than 200,000 advanced AI chips in 2025, with almost all shipments destined for domestic firms.
  • Since 2019, US export rules have barred Chinese companies from accessing leading-edge chips and manufacturing tools to curb Beijing’s tech and military ambitions.
  • Ren Zhengfei confirms Huawei’s AI chips trail a generation behind US rivals, but the company is allocating over $25 billion annually to close that gap.
  • Export curbs have eroded Nvidia’s share of the Chinese market as homegrown alternatives gain traction.
  • Although a tentative trade truce was reached in London this week, the Commerce Department vows to keep evolving its controls to counter China’s rapid chip development.