U.S. Enforces Global Ban on Huawei Ascend Chips Citing Export Control Violations
The U.S. government has issued new guidance declaring that the use of Huawei's Ascend AI processors anywhere worldwide violates U.S. export controls. This announcement follows the Commerce Department's recent rescindment of the AI Diffusion Rule and introduces restrictions on Huawei’s Ascend accelerators. The move reflects growing concerns, including those from Nvidia, about the potential rise of Chinese AI platforms filling the gap if American AI processor sales are restricted.
Huawei's Ascend AI Processors Targeted
The U.S. Department of Commerce (DoC) states that Huawei's Ascend processors were developed or manufactured using American technologies without proper authorization. Consequently, any individual or organization using these components—even for research—without prior approval may face serious legal consequences. These include criminal charges, administrative penalties, fines, loss of export privileges, and possible imprisonment.
A statement from the DoC's Bureau of Industry and Security reads:
- These chips are likely designed with U.S. software or technology, or produced using semiconductor equipment involving American-origin technology.
- They may have been produced or transferred without the required Bureau of Industry and Security (BIS) authorization, violating U.S. export regulations.
Important distinctions are made among Huawei's processors. The Ascend 910B, 910C, and the upcoming 910D models are banned. However, the original Ascend 910, legally purchased from TSMC before Huawei was added to the U.S. Entity List, remains allowed for use.
These processors are utilized outside China as well. For example, the UAE AI company G42 previously collaborated with Huawei but has since shifted partnerships to U.S.-based Cerebras, discontinuing ties with Huawei hardware.
Nvidia’s Perspective on Huawei as a Competitor
Nvidia acknowledges Huawei as a strong competitor in AI hardware. Huawei’s Ascend 910-series processors and rack-scale solutions like the CloudMatrix 384 offer scalability that traditional rivals such as AMD and Intel currently lack. Huawei’s Compute Architecture for Neural Networks (CANN) platform is positioned as a direct competitor to Nvidia's CUDA.
Nvidia CEO Jensen Huang has warned that restricting U.S. companies’ access to certain markets—including China and Europe—could allow competitors like Huawei and its CANN platform to set industry standards. Whoever controls AI technology standards will shape the industry’s future.
Despite this, Huawei faces significant hurdles. It is banned from using TSMC's advanced manufacturing technology and relies on proxies to acquire chips for its Ascend processors. Last year, Huawei managed to secure enough silicon to produce about one million Ascend 910C accelerators through unauthorized means. Still, it cannot produce chips at the scale necessary to fully replace Nvidia in China.
Huawei’s domestic foundry, SMIC, cannot meet the demand for advanced chips due to U.S. sanctions and restricted access to critical manufacturing equipment. This limitation has driven Huawei to invest heavily in developing its own chipmaking tools.
The timing of this ban is notable, coming just after the U.S. and China agreed to temporarily suspend certain import tariffs for 90 days, signaling some progress in trade talks. Yet, the U.S. government is clearly signaling its commitment to maintaining AI leadership, even if it means tightening restrictions on Huawei despite the company’s limited expansion beyond China.
Other Chinese AI Chipmakers Face Similar Challenges
Huawei is not the only Chinese company developing AI processors. Biren Technology, InnoSilicon, and Moore Threads also produce GPUs based on architectures originally developed by Imagination Technologies. Their leadership includes veterans from AMD, Nvidia, and Huawei, bringing valuable expertise.
Currently, none of these companies can rival Nvidia's CUDA or Huawei's CANN platforms. Additionally, Biren and Moore Threads are on the U.S. Entity List, restricting their access to TSMC and other suppliers using American technology.
These firms continue to develop their technology and could eventually challenge U.S. dominance in certain AI sectors.
Looking Ahead: Will the U.S. Expand Restrictions?
The new U.S. rule raises an important question: Will the government extend export control restrictions to cover all Chinese AI processors potentially developed or manufactured with unauthorized American technologies worldwide? Such measures would strongly protect Nvidia and other U.S. companies but could further escalate tensions in the AI technology landscape.
For government professionals monitoring technology and trade policies, this development underscores the increasing intersection of national security concerns with advanced technology export controls. Staying informed on these evolving regulations is critical.
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