[News] Huawei Set to Mass-Produce Ascend 910C AI Chips by Early 2025 Despite Low 20% Yield Rate

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After the outbreak of the recent US-China tech war, Huawei has become a key target for the US, with its advanced chip development facing severe restrictions. According to a report from Commercial Times, citing Reuters, Huawei plans to mass-produce its most advanced AI chips in the first quarter of 2025. However, the report highlights that due to restrictions imposed by the US, it will be difficult for Huawei to produce enough chips to meet market demands.

Despite these challenges, the report points out that Huawei has already started to provide samples of its latest chip, the Ascend 910C, to several tech companies and beginning to accept orders. The Ascend 910C, according to the report, is designed to compete with AI chips produced by US industry leader NVIDIA.

However, significant obstacles remain in the manufacturing process. The report notes that the Ascend 910C is being produced by SMIC using the N+2 process. Due to restrictions that prevent SMIC from acquiring lithography equipment, the yield for these chips is only around 20%—far below the 70% yield generally required for commercial production.

The report also highlights that Huawei’s challenges extend beyond the Ascend 910C. Its currently most advanced chip, the Ascend 910B, which is also manufactured by SMIC, has a yield rate of only about 50%. This has forced Huawei to reduce production targets and delay deliveries, further complicating its efforts to fulfill customer orders.

As the report notes, the production delays have already impacted key customers. For example, ByteDance, the parent company of Chinese social platform TikTok, had ordered over 100,000 Ascend 910B chips earlier this year. However, by July, fewer than 30,000 chips had been delivered.

According to the report, the U.S. has prohibited Dutch company ASML from providing EUV lithography equipment to Chinese firms since 2020. In 2023, ASML further stopped exporting more advanced DUV equipment to China, and some Chinese fabs are now barred from purchasing even older ASML DUV equipment.

The report, citing sources, states that Huawei recognizes the EUV restrictions will not be resolved in the short term and is therefore prioritizing orders from strategic government and major enterprises.

On the other hand, U.S. authorities are implementing stricter export controls, further limiting shipments to Chinese firms. According to the report, TSMC notified the U.S. Commerce Department several weeks ago that one of its chips had been identified in Huawei’s 910B processor. Following this revelation, the report notes, the U.S. ordered TSMC to immediately halt shipments of advanced AI chips to Chinese customers, aiming to prevent the diversion of such chips to Huawei.

Read more

• [News] Huawei Reportedly Begins Sampling of Ascend 910C to Rival NVIDIA
• [News] Huawei’s Self-developed AI Chip Challenges NVIDIA, Boasting Its Ascend 910B to Be Equal in Match With A100

(Photo credit: Huawei)