[News] Huawei Advances, but U.S. Reportedly States China’s Advanced Chip Output Limited to 200K

As the U.S. moves to restrict NVIDIA’s H20 chip in China, Commerce Secretary Howard Lutnick said China still can’t mass-produce advanced semiconductors, adding that the country can make only around 200,000 high-end chips, according to Bloomberg.

Bloomberg, citing Lutnick, sees this as clear evidence that export curbs are slowing China’s tech progress. Lutnick estimates China can produce only about 200,000 advanced chips, such as those used in AI training or smartphones—far below its actual demand.

China’s ability to produce such chips has been hotly debated, especially since Huawei launched a 7nm chip-powered smartphone in 2023, as noted by Bloomberg. Wall Street Journal indicates that Huawei now prepares to test its most advanced AI chip, the Ascend 910D, with samples expected as early as late May.

Interestingly enough, the Wall Street Journal reports that Huawei is set to deliver over 800,000 Ascend 910B and 910C chips this year to clients like state telecom firms and ByteDance—far surpassing Lutnick’s 200,000-chip estimate.

TrendForce: China’s Local Chipmakers May Reach 40% Share

According to TrendForce, in the face of geopolitical pressure and supply chain restructuring, Chinese chipmakers such as Huawei and Cambricon—and in-house ASIC efforts by major CSPs—are becoming increasingly vital.

Notably, TrendForce observes that in China, the AI server market is adjusting to new US export controls introduced in April 2025, which are expected to reduce the share of imported chips (e.g., from NVIDIA and AMD) from 63% in 2024 to around 42% in 2025.

Meanwhile, domestic Chinese chipmakers—such as Huawei—are projected to boost their market share to 40%, nearly on par with imported chips, supported by strong government policies promoting homegrown AI processors, as noted by TrendForce.

Read more

• [News] Huawei Reportedly Set to Test New Ascend 910D AI Chip as Early as May, Aiming to Challenge NVIDIA
• [News] Huawei Reportedly Builds 7nm AI Chip Line in First Shot at Making Its Own High-End Chips

(Photo credit: Huawei)