[News] China Races Ahead in AI: Updates on Huawei’s Advancements and Big Fund’s Semiconductor Moves

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Despite tightening U.S. export controls on AI chips, China seems to be making strides in its AI development, fueled by strong government investment and local expansion. A report from Economic Daily News, citing Financial Times, suggests Huawei is aiming to expand its market share by promoting self-developed chips for AI inference tasks, encroaching on NVIDIA’s territory.

On the other hand, China’s government-backed National Integrated Circuit Industry Investment Fund (Big Fund) is advancing its third phase with a ¥344 billion ($47 billion) initiative to strengthen its semiconductor industry. Key focus areas may include AI computing chips and HBM chips, according to Commercial Times.

Huawei Tries to Turn the Tide by Expanding AI Inference Business

Major AI companies in China used to rely heavily on NVIDIA’s GPUs for training large language models. However, as model training gradually slows and AI applications like chatbots gain wider adoption, demand for inference will likely increase, creating opportunities for Huawei.

The Financial Times report notes that the Chinese tech giant now focuses on a more technically feasible path. Though incapable of competing with NVIDIA in the AI training sector, it is reportedly positioning its latest Ascend AI chips as the hardware of choice for “inference” tasks.

By running NVIDIA-trained AI models on its Ascend chips. Huawei is helping local businesses bridge the gap with compatibility software tools, the report adds.

Though NVIDIA’s CUDA is user-friendly and accelerates data processing, Huawei’s upcoming Ascend 910C chip is expected to address concerns, as the new hardware will be paired with improved software to make it easier for developers to use, as per Financial Times.

China’s USD 47 Billion Big Fund Gears up

On the other hand, amid U.S. efforts to limit China’s AI development, China’s government-backed “National Integrated Circuit Industry Investment Fund” (Big Fund) has been actively pushing forward its third phase.

According to Commercial Times, aside from previous focuses on semiconductor manufacturing, equipment, materials, and components, the rapid rise of AI technology in the past two years may shift investment attention to key AI semiconductor areas, such as computing chips and HBMs.

The third phase of the Big Fund, registered on May 24, 2024, has a capital of ¥344 billion (USD 47 billion), higher than the combined total of the first and second phases, the report adds.

As reported by TrendForce, this ambitious program focuses on supporting domestic chip production equipment developers, particularly as access to advanced tools from companies like ASML becomes increasingly restricted. Managed by Huaxin Investment Management, the fund’s initial investment of ¥93 billion ($12.685 billion) targets key material and equipment manufacturers.

However, TrendForce notes that this investment may fall short of enabling China to compete with established market leaders. Since its inception in 2014, the Big Fund’s efforts have faced significant headwinds, particularly due to U.S. sanctions that have disrupted the operations of major Chinese semiconductor firms.

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)