Huawei Scales Back Smartphone Chip Production — AI Accelerators Take Precedence

Due to surging demand for AI accelerator chips and limited manufacturing capacity, Huawei has pivoted to focus on AI chip production, slowing down the production of smartphone processors. This move has affected the manufacture of the flagship Mate 60 smartphones, Reuters reports, citing informed sources.

According to sources, Reuters reported that both the AI accelerators Ascend and the Kirin chips used in Mate 60 smartphones are produced in the same facility. During the production of Ascend AI accelerator chips, the yield was higher than that of the Kirin. As a result, Huawei had to opt to slow down smartphone production. The company is also working on improving the quality of production to increase the yield of usable chips from each wafer, with the hope that this situation will be temporary.

The accelerating AI market race coupled with technological tensions between China and the US has caused Huawei to prioritise the production of AI chips over smartphones. This shift follows their achievement of becoming the leader in smartphone sales in China for the first time in over three years. This success was made possible with the Mate 60 smartphone series’ launch, developed with a domestic 5G-supported chip. The inclusion of a state-of-the-art HiSilicon Kirin 9000S processor in the Chinese smartphone demonstrated the ineffectiveness of US sanctions, raising questions from the US authorities and prompting an investigation by the US Department of Commerce.

This post was last modified on 02/05/2024

Julia Jackson: Hey there! I'm Julia Jackson, your friendly neighborhood tech geek, always navigating the exciting realms of technology with unbridled enthusiasm. Born and raised in the digital age, I've been on a relentless quest to understand and unravel the intricacies of the ever-evolving tech landscape. Hailing from a generation that witnessed the meteoric rise of the internet, I've been a digital native since the dial-up days. From the nostalgic hum of connecting to the World Wide Web to the lightning-fast speeds of today's fiber optics, I've witnessed and adapted to the digital evolution with a keen eye and a passion for all things tech. My love affair with technology goes beyond just using gadgets; I'm driven by an insatiable curiosity to understand the nuts and bolts that power our digital world. Whether it's coding languages, emerging technologies, or the latest in artificial intelligence, I'm always eager to delve deeper and unravel the mysteries that make our digital existence possible. Beyond my personal pursuits, I'm deeply committed to fostering a sense of community in the tech world. Whether through sharing knowledge on online forums, attending tech meetups, or mentoring aspiring techies, I believe in the power of collaboration and knowledge sharing to propel us all forward.