Huawei refocuses on AI chips, slowing down phone production

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Huawei refocuses on AI chips, slowing down phone production

Huawei is making significant changes to its production plans, showing a strong interest in the growing field of artificial intelligence (AI). The tech giant has decided to increase the production of its Ascend 910B AI chip, even if it means slowing down the production of Mate 60 smartphones at at least one of its factories. This move comes as a surprise, as the Mate 60 recently overtook Apple in terms of phone sales in China, as mentioned by the South China Morning Post. Huawei’s decision to focus more on AI chips than smartphones underscores the company’s belief that AI will have a significant impact on the tech world.

Demand for AI chips is growing in China

The Ascend 910B chip is important for the development of AI models, and the demand for it in China is growing. This growing interest is due to the fact that Chinese AI developers are finding it difficult to obtain high-quality AI chips from abroad, such as Nvidia’s H100, due to trade restrictions imposed by the United States. By focusing on the Ascend 910B, Huawei is not only finding a way around these issues, but also positioning itself as an important player in the domestic AI market.

Huawei’s new direction also shows how eager Chinese tech companies are to get involved in the AI field. Even if they are a bit behind global leaders like OpenAI and Google, companies like Baidu are pushing ahead with their own AI projects. China is also leading the way in creating regulations for AI, requiring companies to get approval before releasing AI products to the public.

In this way, Huawei is preparing for the future by focusing on an area that could fundamentally change technology. This move shows that Huawei is thinking ahead, ready to solve current problems while betting on the long-term importance of artificial intelligence.

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