Huawei plans to push Ascend 910C into mass production in 2025

Is Huawei about to defy US export controls yet again?

On Thursday, Reuters reported that Huawei is planning to push the next generation of its most advanced AI chip – the Ascend 910C – into mass production in early 2025.

• The chips are generally on par with those produced by Nvidia.

Production would be undertaken by Chinese chip manufacturer SMIC – but there's a catch:

• According to Reuters' sources, chip yields would be a staggeringly low 20%.

That means 80% of chips that could be produced on a wafer would be defective.

• That level of inefficiency is wildly expensive.

Fun fact: Huawei's current generation chip, the Ascend 910B, is reportedly produced at a 50% yield.

Our take: This would be a hollow and temporary win for Huawei.

• While Huawei and SMIC may be able to achieve a few more upgrades, yields of 20% are simply unsustainable over the long term.
• If Huawei can't increase yields, the technology gap between companies like Nvidia and SMIC will start to widen at a rapid clip.