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Huawei’s Ascend 910D: A Strategic Shift in AI Chips Amidst U.S.-China Tech Tensions

Huawei is sending out samples of its Ascend 910C processor for testing as the tech giant races to fill a void left by Nvidia

In a move that signals major shifts in the global semiconductor landscape, Huawei Technologies Co. is preparing to test its new Ascend 910D AI processor, a bold attempt to replace certain Nvidia products. According to a recent report by The Wall Street Journal, this development comes despite years of aggressive efforts by the U.S. government—beginning under the Trump administration—to curtail China’s semiconductor advancements. Huawei’s initiative showcases not only the resilience of Communist China’s tech sector but also underscores the intensifying competition in AI computing, a domain critical to both economic and national security.

The Ascend 910D is still in the early stages of development. However, Huawei has already begun inviting leading Chinese tech firms to assist in its performance evaluations, a move indicating the company’s commitment to accelerating its domestic AI hardware capabilities.

But why does this matter? And what are the potential consequences for global tech markets, AI innovation, and geopolitical stability?

Let's explore.

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The Rise of the Ascend 910D: Context and Capabilities

The Ascend brand is not new to Huawei’s portfolio. Huawei launched its original Ascend 910 in 2019, branding it the world’s most powerful AI processor at the time. The Ascend 910 was designed primarily for model training — one of the most compute-intensive tasks in AI development.

Now, with the Ascend 910D, Huawei is taking the next step, aiming to build a chip that can replace Nvidia’s AI processors, which dominate global markets. Although specific technical details are sparse, early reports suggest the 910D will offer competitive computing power, energy efficiency, and a high degree of scalability for data centers.

The timing is no coincidence. Since 2019, U.S. sanctions have blocked Huawei from accessing crucial technologies, including advanced semiconductors and manufacturing equipment. These sanctions also cut off the company from Taiwan Semiconductor Manufacturing Company (TSMC), its former key foundry partner.

Developing a domestically-produced AI chip is Huawei’s strategic response to these restrictions — one that could reshape the semiconductor power balance.

U.S. Efforts to Contain China’s Semiconductor Growth

Huawei’s progress occurs against the backdrop of U.S. efforts to stifle China’s tech ambitions.

Under the Trump administration, the U.S. Department of Commerce placed Huawei on its Entity List, citing national security concerns. Export controls were expanded under the Bureau of Industry and Security (BIS), effectively blocking Huawei from acquiring American software, hardware, and IP critical for advanced chip design and manufacturing.

These measures were intended to choke off China’s access to cutting-edge technology, thereby preserving U.S. leadership in semiconductors—an industry valued at over $500 billion annually and central to the future of AI, 5G, autonomous vehicles, and military systems.

Despite these obstacles, Huawei’s continued innovation demonstrates a troubling reality: China’s semiconductor sector, although bruised, remains resilient.

Strategic and Military Implications

Beyond commercial competition, Huawei’s new AI chip raises serious national security concerns.

Huawei has long been criticized for its close ties to the Chinese Communist Party (CCP) and the People’s Liberation Army (PLA). A 2020 report from the U.S. Department of Defense officially categorized Huawei as a company supporting the PLA’s military operations. This affiliation suggests that advances in Huawei’s AI technology could directly benefit China’s military capabilities.

AI chips like the Ascend 910D are critical not just for civilian applications, but also for:

• Surveillance systems
• Autonomous weapons
• Cyber warfare capabilities
• Military logistics and decision support systems

If Huawei succeeds in creating a domestically-controlled supply of high-end AI processors, the PLA could integrate these advancements into next-generation warfare systems, narrowing the U.S. technological edge.

Moreover, Huawei’s invitations to Chinese tech firms to test the Ascend 910D imply a coordinated national effort — a hallmark of China’s civil-military fusion strategy, where technological innovation seamlessly supports both civilian and military goals.

The Broader Economic Impact

From an economic perspective, Huawei’s success with the Ascend 910D could disrupt several sectors:

1. Global Semiconductor Market

The semiconductor market is already undergoing massive changes, with supply chain disruptions, increasing nationalism, and decoupling trends between the U.S. and China. If Huawei’s chip becomes competitive, it could carve out market share in Asia, Africa, and even parts of Europe where Huawei still maintains influence.

This could affect global giants like:

• Nvidia (dominant in AI training GPUs)
• AMD (high-performance processors)
• Intel (struggling to maintain leadership in AI accelerators)

2. Cloud Computing and AI Services

Many Chinese companies currently rely on Nvidia GPUs for training massive AI models. Huawei’s 910D could offer a domestic alternative, reducing dependency on U.S. suppliers and accelerating China's cloud computing ecosystem.

Major Chinese cloud providers like Alibaba Cloud, Tencent Cloud, and Baidu AI Cloud could benefit by integrating the Ascend 910D into their infrastructure.

3. Investment Patterns

The development could influence venture capital and private equity flows. Investors looking to capitalize on China’s self-reliant tech strategy might prioritize companies working on AI hardware ecosystems, such as EDA software, chip design firms, and foundries aligned with Huawei.

Risks for Huawei

However, Huawei's path is not without challenges.

• Manufacturing Constraints: Producing state-of-the-art AI chips typically requires access to extreme ultraviolet (EUV) lithography, a technology dominated by Dutch company ASML. Export bans prevent China from acquiring EUV systems, limiting Huawei’s ability to produce chips below 7nm.

• Global Backlash: Nations aligned with the U.S., including key allies in Europe and Asia, are tightening restrictions on Huawei’s operations. As geopolitical tensions rise, Huawei could face additional sanctions targeting financial flows, cloud services, and new export bans.

• Performance Parity: Matching or exceeding Nvidia’s performance, especially in areas like tensor processing and memory bandwidth, is a daunting technical feat. Early versions of Chinese AI chips have historically lagged behind in both raw performance and software ecosystem support.

Conclusion: A Technological Power Play with Global Consequences

Huawei’s testing of the Ascend 910D marks a pivotal moment in the tech cold war between the U.S. and China. It highlights not only the resilience of Communist China’s semiconductor ambitions but also the growing sophistication of its AI hardware sector.

For U.S. policymakers, Huawei’s advances represent a stark warning: technology restrictions alone may not be enough to curb China’s tech rise. Long-term competitiveness will require domestic innovation, international collaboration, and strategic investments across critical sectors.

For businesses and investors, the landscape is shifting fast. Tech decoupling is no longer theoretical—it’s happening. Companies must navigate increasingly fragmented supply chains, rising regulatory risks, and evolving opportunities in regionalized tech markets.

And for the broader world, the Ascend 910D underscores a new reality: The battle for AI supremacy is not just about algorithms—it’s about the chips that power them.