Huawei doubles AI chip output target, claims 1.4nm breakthrough without US tech
Huawei plans to produce 600,000 Ascend 910C AI accelerators in 2026, doubling this year's output, and unveiled a novel chip architecture that it says will match 1.4nm transistor density by 2031 without advanced lithography tools restricted by US sanctions. The move signals China's push to replace Nvidia in its domestic AI market and deepen tech self-sufficiency.
Bottom line — Huawei could capture 50% of China's AI chip market by 2026, per Bernstein, as Nvidia's share plunges from 40% to 8%.
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- Huawei's 'Tau Scaling' architecture prioritises data movement speed over transistor shrinking, the company said at a Shanghai symposium, per Rappler and Fortune.
- The first chips using 'LogicFolding' will be Kirin mobile processors launching later this year, according to Huawei chip chief He Tingbo, Fortune reported.
- Analysts at Counterpoint are sceptical of a breakthrough; Omdia's He Hui called the approach 'credible' but not revolutionary, per Rappler.
- Huawei's total AI chip die output is targeted at 1.6 million units in 2026, per Bloomberg via WebProNews, though SMIC's yield rates remain a risk.
- DeepSeek has ordered at least 160,000 next-gen Ascend 950DT accelerators for a 1-gigawatt data centre by late 2027, per Crypto Briefing.
- Huawei's new Kirin 9050 Pro claims 42% higher performance than its previous chip and is used in the $2,979 (€2,740) Mate XT2 three-screen phone, per The Register.
- The Register notes the chip is 'free of US technology,' but the folding phone niche is tiny: Counterpoint predicts Huawei will have 24% of that market by end-2026.
- HarmonyOS, Huawei's Android-free OS, now runs on 85 million devices, the company said at its launch event, per The Register.
- Nvidia CEO Jensen Huang said earlier this year that the company had 'largely conceded' China's AI chip market to Huawei, per Rappler.
- SMIC shares jumped 18% on the announcement, Fortune reported, but the foundry still lags TSMC by roughly five process generations.
- The US blacklist cut Huawei off from many US technologies in 2019, forcing it to develop alternatives in 'extreme survival mode,' per Rappler.