Huawei seeks AI chip customers in Middle East, South-east Asia
The hardware giant, China's strongest competitor to leading US chipmakers, has reached out to potential customers in the United Arab Emirates, Saudi Arabia and Thailand about purchasing its older-generation Ascend 910B processors, according to sources familiar with the matter. The two Gulf nations recently struck deals for well over a million Nvidia and Advanced Micro Devices (AMD) chips over several years. Thailand's AI efforts similarly rely on Nvidia.
Huawei is offering 910B volumes in the low thousands, according to the sources, though the exact number for any particular pitch remains unclear. The company is also trying to woo customers with remote access to CloudMatrix 384, the sources said. That's a China-based AI system built with more advanced Ascend 910C chips, which Huawei is not currently prepared to export due to limited supplies, according to a source familiar with the company's thinking.
Huawei is focused on selling 910Cs to Chinese firms that cannot access best-in-class American chips, the source said.
Huawei's efforts have not produced any finalised deals, the sources said, though they indicate the company, which Nvidia has called a formidable competitor, wants to give foreign AI markets a taste of its technology as it works to boost manufacturing output.
The proposals also have garnered attention from policymakers in Washington, who want to ensure that the world builds AI systems using American, not Chinese, technology. US officials and Huawei itself, estimate that the Ascend lineup trails Nvidia's offerings by a generation or more.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
Parties in the UAE, including the Mohamed bin Zayed University of Artificial Intelligence, have not shown interest, the sources said, while the status of talks in Thailand is unclear. Representatives for the UAE government and the university did not respond to requests for comment, while Thai officials did not immediately respond on a public holiday.
Huawei has also pursued a deal for some 3,000 Ascend chips in Malaysia, Bloomberg News has reported, though the status of that project is unclear. Saudi Arabia, meanwhile, seems open to potential purchases, including by the Saudi Data & AI Authority or SDAIA, according to one source who described those conversations as advanced. The Saudi government did not immediately respond to a request for comment, while a SDAIA spokesperson said that 'at this stage, we are not in a position to provide a comment as the matter is outside our current scope'.
A senior Trump administration official has said Huawei can only make 200,000 AI chips this year, which are expected to be delivered mostly within China, where demand exceeds a million processors. (That number does not include a stockpile of 2.9 million Ascend 910B dies Huawei managed to source from production powerhouse Taiwan Semiconductor Manufacturing Company)
But Washington 'should not take too much comfort in the fact that China's production of these advanced chips is relatively small, because we know they have global ambitions', Commerce Under Secretary Jeffrey Kessler told lawmakers last month.
Huawei declined to comment for this story, which is based on interviews with around a half-dozen people who requested anonymity to discuss sensitive information. The company said earlier this year that it has not shipped Ascend chips to Malaysia, and the Malaysian government has also distanced itself from that private project.
US officials are particularly focused on AI infrastructure projects in the Middle East and South-east Asia, given those regions' technological ambitions as well as their longtime ties to Beijing and Huawei.
While many governments have sought to avoid picking sides in the US-China AI race, Washington has applied increasing pressure for those decisions by warning companies against using Huawei AI processors, while offering access to advanced American chips, but only under certain conditions.
Those conditions, though, have yet to be determined. Nearly two months after the Trump administration said it would overhaul a Biden-era framework, officials remain divided on the national security implications of Nvidia and AMD sales to places such as the UAE and Saudi Arabia.
The Commerce Department has drafted but not finalised a rule that would formalise its May announcement and extend license requirements on AI chips to Malaysia and Thailand, but which does not constitute a comprehensive replacement to Biden's approach.
The agency also has not approved chip shipments for billions of US dollars in AI deals touted as part of US President Donald Trump's May trip to the Persian Gulf, sources familiar with the matter said. AI chip exports to the UAE, Saudi Arabia and other Gulf nations have required US licenses since 2023.
Nvidia declined to comment. AMD and the Commerce Department did not respond to requests for comment.
For Trump officials who have argued in favour of those projects, Huawei's attempts to export Ascend chips are all the more reason to move quickly, so that the company does not lock in customers now and then ship larger volumes in the future, sources familiar with the matter said.
But others remain worried that sizeable exports of US chips could ultimately benefit Beijing, and argue that Nvidia's dominance gives Washington leverage to impose stronger security conditions on overseas data centres.
In these officials' view, sources familiar with the matter said, the fact that Huawei is only offering foreign customers a few thousand Ascend chips, and not even its best ones, illustrates exactly why the US can afford to take its time.
In Saudi Arabia, where a state-backed AI fund has said it would divest from China if the US asked, the government has long collaborated with Huawei on AI initiatives. But it remains unclear whether SDAIA would move forward with an Ascend 910B deal, or how the US could respond.
The Commerce Department earlier this year said use of Huawei's Ascend chips 'anywhere in the world' could be a violation of US trade restrictions, which the agency says cover those processors because Huawei uses American technology in its production process.
Amid backlash from Beijing, the Commerce Department removed that global reference, though the guidance still says that unapproved use of the Ascend 910B, 910C or 910D, a future Huawei model, may result in penalties from Washington. BLOOMBERG

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 minutes ago
- Business Times
South Korea pitches Trump on shipyards for last-minute trade deal
[SEOUL] South Korea is pitching the US on a shipbuilding partnership as a key proposal to seal a last-minute agreement to avoid a 25 per cent tariff rate. While details remain unclear, Yonhap News reported that South Korea has proposed a multi-billion dollar project dubbed 'Make American Shipbuilding Great Again'. South Korea's Industry Ministry declined to comment. 'We confirmed the US side's strong interest in the shipbuilding sector and the two countries agreed to work together to develop mutually acceptable terms that include shipbuilding cooperation,' South Korea's presidential office said on Saturday (Jul 26). As countries across Asia clinched deals last week, Seoul's negotiators have been racing to stay engaged with their US counterparts as Washington shifted its focus to the European Union and China. The US and EU announced a pact on Sunday that will see the bloc face 15 per cent tariffs on most of its exports to the US, including automobiles. The latest agreement, which follows a Japan deal last week, adds to the pressure on Asia's fourth-largest economy to clinch a deal. South Korea, where negotiations have been slowed by internal political turmoil, is one of the biggest Asian economies to still be without a deal. Aside from China, other major exporters in the region that are in the thick of negotiations include India and Taiwan. South Korea's finance and foreign ministers are set to meet with their US counterparts this week in a last-minute bid to close the negotiations and the government in Seoul has said the two countries are committed to making a deal before US President Donald Trump's Aug 1 deadline. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Also on the table is increased access to South Korea's agricultural market, as well as a fund to invest in American projects similar to an agreement Japan struck. Under the deal, the two sides touted a US$550 billion fund as part of the agreement on the tariff rate dropping to 15 per cent. The South Korean talks are similarly focused on reaching a 15 per cent tariff rate, including for autos, and the recent proposals suggest a comparable structure. Putting agricultural imports on the table raises the stakes for South Korea's new government. Past efforts to open the country's beef market sparked nationwide protests and any shift on rice imports could face even stiffer resistance. Barring a deal, Bloomberg Economics estimates a 1.7 per cent hit to South Korea's gross domestic product, with market volatility and uncertainty threatening to push the GDP losses beyond that. Overseas shipments were equivalent to more than 40 per cent of South Korea's GDP last year. 'Japan's trade deal paints a positive backdrop but also sets a high bar for others,' Morgan Stanley economist Kathleen Oh said in a note last week. 'Korea and Taiwan may need to ramp up new investment schemes to increase agricultural and energy imports and expand market access, as seen in Japan's case.' BLOOMBERG

Straits Times
26 minutes ago
- Straits Times
Boeing emerges as a winner in Trump's trade wars
US President Donald Trump and President and CEO of Boeing Kelly Ortberg attending a roundtable discussion in Doha, Qatar, in May. WASHINGTON - There are typically not many winners in a trade war, but Boeing appears to be reaping some rewards from the one started by US President Donald Trump. The aerospace company has received a steady stream of new orders as part of trade deals between the United States and other countries. These sales could be a boon for Boeing as it emerges from years of bruising crises. They also allow Mr Trump to claim that his unconventional trade policies are helping American manufacturing. Orders for hundreds of Boeing jets have been announced in deals with Indonesia and Japan in Jult, as well as Bahrain, the United Arab Emirates, Saudi Arabia and Qatar earlier in 2025. 'Ever since his first term, his trade deals have generally involved these kinds of purchase agreements,' said Mr Bruce Hirsh, a trade policy expert at Capitol Counsel, a lobbying firm in Washington that has clients in the aerospace industry. 'Our trading partners know this, so they're looking for these kinds of big-ticket items that they can offer to purchase.' Some aviation analysts are sceptical that US trade negotiators had to twist arms to persuade countries to buy Boeing planes. Airlines, including those controlled by foreign governments, plan such expensive purchases carefully and over months, if not years. Moreover, airlines have few choices, since Boeing and Airbus of France are the only two suppliers of large commercial jets. Still, those experts said, it was not surprising that Mr Trump and his aides have made a point of highlighting new Boeing orders as part of their trade deals. The company employs tens of thousands of Americans and is one of the country's top exporters. Wall Street has also taken note of the announcement of new orders, and Boeing's share price has climbed steadily since early April, when Mr Trump announced steep new tariffs on many countries. Analysts note that the trade deal announcements could generate even more orders. That is because customers who have not placed orders may feel pressure to buy planes now or risk having to wait when they need them. Planes ordered today will typically be delivered years from now. Boeing, which declined to comment for this article, has seemed to welcome Mr Trump's interest in its business. Boeing chief executive Kelly Ortberg joined Mr Trump on a May visit to the Middle East, during which the Qatar deal was announced. 'If the president of the country says, 'Come with me and be certain that we sign something big that says there will be many jobs in the US', what will you do?' said Mr Adam Pilarski, president of Avitas, an aviation consulting firm. But Mr Pilarski and other experts cautioned that the orders might not be nearly as substantial as they seemed. The administration, other countries and Boeing have offered few details about the deals, suggesting that at least some are still subject to complex negotiations between the manufacturer and airlines. In July, for example, Mr Trump said Indonesia had agreed to buy 50 Boeing jets. Later, however, an Indonesian official said the deal was still being hashed out between Garuda, a state-owned airline, and Boeing. 'I suspect these orders are, as we used to joke at air shows, Mouthls – memoranda of understanding to have lunch,' said Mr Richard Aboulafia, a managing director at AeroDynamic Advisory, a consulting firm. 'The real hard work of contract negotiation and finance package negotiation takes place after the President's plane has left the country.' Even if the orders are confirmed with formal contracts, many probably would have been placed even without Mr Trump's intervention, experts said. In May, Qatar Airways, a large airline that operates many long-distance flights, placed an order for 150 of Boeing's wide-body planes. The announcement was notably thorough. 'They involved press conferences, shaking hands, everything but the proverbial kissing of the babies,' said Mr Courtney Miller, managing director of Visual Approach Analytics, an aviation consulting firm. That deal, he said, probably would have been placed anyway, even if the timing had been accelerated to align with Mr Trump's visit. While some orders may be the result of real political pressure, even then a lot can change by the time the planes are ready to be delivered. Boeing and Airbus each have thousands of planes on order, accounting for many years of production. In that time, airlines can back out of agreements, though they may have to forfeit deposits. Customers can also ask Boeing or Airbus to delay deliveries or reduce their orders. A manufacturer may be willing to make such changes, especially if doing so will allow it to sell those planes to another airline that is desperate for new jets. The tariffs Mr Trump has imposed may threaten the financial health of Boeing's suppliers, and the prospects of retaliation by US trading partners like the European Union could hurt the plane maker's sales. Last week, budget airline Ryanair said it would consider deferring deliveries of Boeing planes if European officials imposed tariffs on American planes. European leaders may take other steps that could hurt Boeing. If the trade deals that the US strikes with other countries give Boeing too big an advantage, Europe could try to entice other countries to order more planes from Airbus, experts said. 'If this game is going to be played, the question is, in the long term, who plays it better?' Mr Miller said. 'It has reopened a very old dynamic of aligning aircraft and airline economics with geopolitical favour.' NYTIMES
Business Times
an hour ago
- Business Times
Asia: Most markets rise, euro boosted after EU strikes US trade deal
[HONG KONG] Most stock markets rose with the euro on Monday after the European Union and United States hammered out the 'biggest-ever' deal to avert a potentially damaging trade war. News of the deal, announced by Donald Trump and European Commission head Ursula von der Leyen on Sunday, followed US agreements last week, including with Japan, and comes ahead of a new round of China-US talks. Investors were also gearing up for a busy week of data, central bank decisions and earnings from some of the world's biggest companies. Trump and von der Leyen announced at his golf resort in Scotland that a baseline tariff of 15 per cent would be levied on EU exports to the United States. 'We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity,' Trump said, adding that the levies would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors. Brussels also agreed to purchase 'US$750 billion worth of energy' from the United States, as well as make US$600 billion in additional investments. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'It's a good deal,' von der Leyen said. 'It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic.' The news boosted the euro, which jumped to US$1.1779 from Friday's close of US$1.1749. And equities built on their recent rally, fanned by relief that countries were reaching deals with Washington. Hong Kong led winners, jumping around one per cent, with Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta also up, along with European and US futures. Tokyo fell for a second day, having soared about five per cent on Wednesday and Thursday in reaction to Japan's US deal. Singapore and Seoul were also lower. The broad gains came after another record day for the S&P 500 and Nasdaq on Wall Street. 'The news flow from both the extension with China and the agreement with the EU is clearly market-friendly, and should put further upside potential into the euro... and should also put renewed upside into EU equities,' said Chris Weston at Pepperstone. Traders are gearing up for a packed week, with a delegation including US Treasury Secretary Scott Bessent holding fresh trade talks with a Chinese team headed by Vice Premier He Lifeng in Stockholm. While both countries in April imposed tariffs on each other's products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 per cent and China's countermeasures slashed to 10 per cent. The 90-day truce, instituted after talks in Geneva in May, is set to expire on Aug 12. Also on the agenda are earnings from tech titans Amazon, Apple, Meta Microsoft, as well as data on US economic growth and jobs. The Federal Reserve's latest policy meeting is expected to conclude with officials standing pat on interest rates, though investors are keen to see what their views are on the outlook for the rest of the year in light of Trump's tariffs and recent trade deals. The Bank of Japan is also forecast to hold off on any big moves on borrowing costs. AFP