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Huawei Makes Breakthrough in AI Chip Production
Huawei has significantly improved the amount of advanced artificial intelligence chips it can produce, in a key breakthrough that supports China’s push to create its own advanced semiconductors.
Increased Yield
The Chinese conglomerate has increased the "yield" — the percentage of functional chips made on its production line — of its latest AI chips to close to 40 percent, according to two people with knowledge of the matter. This represents a doubling from 20 percent about a year ago.
Improved Performance
The move represents an important advance for Huawei, which has been rolling out its latest Ascend 910C processors, which offer better performance than its previous 910B product.
Goal to Reach 60 Percent Yield
The improved yield means that Huawei’s production line for Ascend chips has become profitable for the first time, according to the people with knowledge of its business. The company has a goal to further improve yields to 60 percent, in line with the industry standard for similar chips.
China’s Efforts to Build Computing Infrastructure
The breakthrough is a step forward for China’s hopes to build computing infrastructure that can support its burgeoning AI industry, despite US export controls designed to hamper the country’s ability to develop sensitive technologies.
Local Tech Companies to Buy Huawei’s AI Chips
The effort has state support, with Beijing urging local tech companies to buy more of Huawei’s AI chips and shift away from $3.3tn US chipmaker Nvidia, which remains the market leader in China by far.
Ren Zhengfei’s Comments
Huawei founder Ren Zhengfei told Chinese President Xi Jinping last week that the worries China had about a "lack of core and soul" had eased, adding "I firmly believe a greater China will rise faster", the People’s Daily reported.
Conclusion
Huawei’s recent progress is significant to achieving China’s goal of reaching full independence for advanced chip production. The company’s improved yield and performance of its AI chips have put it in a stronger position to challenge Nvidia, the current market leader in China. However, Huawei still faces challenges to convince more customers to abandon Nvidia, including the difficulty of securing supplies and the need to overcome software bugs and memory issues.
Frequently Asked Questions
Q: What is the yield of Huawei’s latest AI chips?
A: Huawei’s latest AI chips have a yield of close to 40 percent.
Q: What is the goal of Huawei’s production line for Ascend chips?
A: Huawei’s goal is to reach a yield of 60 percent, in line with the industry standard for similar chips.
Q: What is the current market leader in China’s AI chip market?
A: Nvidia is the current market leader in China’s AI chip market.
Q: What are the challenges facing Huawei in convincing customers to abandon Nvidia?
A: Huawei faces challenges including difficulty securing supplies, software bugs, and memory issues.
