Rising demand for AI chips and other constraints have forced Huawei to cut production of the Mate 60. Huawei uses the same facility to produce Ascend AI chips and Kirin mobile chips, sources said, and the Chinese tech giant appears to have prioritized AI chip production.
According to a Reuters report, with increasing global competition over the development of more powerful artificial intelligence and increasing US sanctions, Huawei is focusing more on the production of Ascend artificial intelligence chips. The company makes this decision while it has achieved the highest number of smartphone sales for the first time in the last three years.
Huawei's focus on the production of artificial intelligence chips
Considering that about 90% of the market of artificial intelligence chips is in the hands of the American company Nvidia, the extensive sanctions of the United States have caused China to go to the manufacture of domestic chips. Now the Ascend 910B chip is the main rival of Nvidia's artificial intelligence chip in China. Huawei apparently wants to prioritize the production of Ascend chips over Kirin chips, so the production of Mate 60 smartphones will be reduced. Of course, it is not yet clear when Huawei wants to implement this decision.
In general, Huawei has not published detailed information on the construction of these chips; Previously, the company quietly made its smartphone chips and surprised US officials with their release, especially when the company announced that it was able to equip its phones with 5G technology.
Huawei was able to achieve these developments together with China's largest chip maker, SMIC. Of course, due to the US barriers to export ultraviolet lithography devices, the process of making these chips has become more laborious and costly, and they are likely to be less efficient.
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