logo
Huawei eyes AI chip foothold in foreign markets as supply challenges drag on

Huawei eyes AI chip foothold in foreign markets as supply challenges drag on

First Post10-07-2025
The Chinese tech giant has approached potential buyers in the United Arab Emirates, Saudi Arabia, and Thailand to promote its older-generation Ascend 910B processors read more
Facing supply chain challenges, Huawei is looking to sell its AI chips in new foreign markets. Reuters
Huawei Technologies Co. is attempting to export small batches of artificial intelligence chips to the West Asia and Southeast Asia, aiming to break into markets currently dominated by Nvidia Corp., despite manufacturing limitations.
The Chinese tech giant has approached potential buyers in the United Arab Emirates, Saudi Arabia, and Thailand to promote its older-generation Ascend 910B processors, Bloomberg reported citing people familiar with the matter. The UAE and Saudi Arabia have already signed multiyear deals for more than a million Nvidia and AMD chips, while Thailand's AI development also depends heavily on Nvidia.
STORY CONTINUES BELOW THIS AD
Huawei is reportedly offering volumes of the 910B in the low thousands, although the exact numbers vary by pitch. The company is also promoting remote access to CloudMatrix 384, an AI system based in China built with the more advanced Ascend 910C chips, the people said. One person familiar with the company's plans said Huawei is not prepared to export the 910C yet due to limited availability and is prioritising sales within China to firms that cannot buy top-tier US chips.
No confirmed deals have emerged from these outreach efforts, but Huawei's proposals demonstrate its aim to expose international AI markets to its technology while ramping up production capacity. The initiative has attracted attention from US policymakers, who remain concerned about the spread of Chinese-built AI infrastructure and want to ensure American technology leads globally. Huawei itself has acknowledged that its Ascend chips lag behind Nvidia's by at least one generation.
In the UAE, parties including the Mohamed bin Zayed University of Artificial Intelligence have not expressed interest, according to the sources. The status of discussions in Thailand remains uncertain. The UAE government and university did not respond to requests for comment, and Thai officials were unavailable due to a public holiday.
Huawei has also reportedly pursued a deal involving about 3,000 Ascend chips in Malaysia, according to Bloomberg News, though it is unclear where those negotiations stand. Saudi Arabia appears more receptive, particularly through the Saudi Data and AI Authority, or SDAIA, one source said, describing those talks as 'advanced'.
The Saudi government did not immediately respond to requests for comment. A SDAIA spokesperson said, 'at this stage, we're not in a position to provide a comment as the matter is outside our current scope.'
STORY CONTINUES BELOW THIS AD
According to a former Trump administration official, Huawei is only expected to produce 200,000 AI chips this year, most of which will be delivered within China, where demand exceeds one million chips. This estimate excludes a stockpile of 2.9 million Ascend 910B chip dies that Huawei reportedly acquired from Taiwan Semiconductor Manufacturing Co.
Commerce Under Secretary Jeffrey Kessler told US lawmakers last month that Washington 'shouldn't 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.'
Huawei declined to comment. The information in this report is based on interviews with around six individuals familiar with the matter, who spoke on condition of anonymity. Earlier this year, Huawei stated it had not shipped Ascend chips to Malaysia, and the Malaysian government has also distanced itself from that private-sector effort.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Explained: Donald Trump's landmark $1.35 trillion trade deal with EU before tariff deadline
Explained: Donald Trump's landmark $1.35 trillion trade deal with EU before tariff deadline

Hindustan Times

time24 minutes ago

  • Hindustan Times

Explained: Donald Trump's landmark $1.35 trillion trade deal with EU before tariff deadline

In a significant breakthrough, President Donald Trump on Sunday announced that the United States and the European Union have reached a comprehensive trade deal, just days before a 30 per cent tariff on European imports was due to take effect. U.S. President Donald Trump and European Commission President Ursula von der Leyen announced a trade deal between the US and the EU.(REUTERS) After high-stakes negotiations in Scotland's Turnberry with European Commission President Ursula von der Leyen, the two leaders revealed a new trade framework aimed at averting a full-blown transatlantic trade war. The deal, according to CNN, hailed by both sides as 'powerful' and 'historic', centers around new tariffs, large-scale energy purchases, and significant investment commitments. Also read: Donald Trump turns up to play golf amid protests against his Scotland trip What does the US-EU deal include? Under the terms of the agreement, the EU will purchase $750 billion worth of US energy, marking a massive expansion in transatlantic energy cooperation. Additionally, the 27-member bloc has committed to investing $600 billion more into the US than its current levels, stated another CNBC report. The report added that in exchange, Trump has agreed to impose a 15 per cent tariff on most European imports to the US, down from the 30 per cent rate he previously announced. The deal is expected to significantly ease trade tensions between the long-time allies. A CNBC report quoted Donald Trump declaring that this was a 'very big deal, biggest of all' as he stood alongside von der Leyen. Meanwhile, the European Commission chief, speaking after the meeting, acknowledged the difficulty of the talks and said, 'It is a good deal, it is a huge deal, with tough negotiations.' Donald Trump-EU deal impact The agreement was finalized just before the August 1 deadline, after which the Trump administration had vowed to raise tariffs on most EU goods from 10 per cent to 30 per cent. Earlier in the day, US Commerce Secretary Howard Lutnick had reaffirmed that Washington would not give further extensions, calling the deadline 'firm', reported CNN. Had the talks collapsed, Brussels was prepared to launch a major counter-tariff package targeting a wide range of US exports and invoke its new Anti-Coercion Instrument, a legislative mechanism designed to push back against economic pressure. Also read: Trump says US will work with Thailand and Cambodia, adds both 'want to settle' A fractured trade relationship The US-EU trade relationship is among the world's largest, valued at nearly $1.97 trillion in 2024, including both goods and services. While the EU ran a goods trade surplus, it faced a deficit in services, resulting in an overall $58.7 billion surplus with the US. Trump repeatedly criticized the imbalance and used it to justify tougher trade terms. 'The US and EU have one of the largest trade deficits,' he had said, defending the imposition of tariffs as leverage. FAQs What is the latest trade deal Trump announced? Trump and EU President Ursula von der Leyen finalized a deal where the EU will buy $750 billion in US energy and invest $600 billion more into the country in exchange for lower tariffs. Why was this deal considered urgent? It came just days before Trump was set to increase tariffs on European imports from 10 per cent to 30 per cent on August 1. What was at stake in the US–EU trade balance? The EU had a $58 billion overall surplus with the US in 2023, mainly due to goods exports, prompting Trump to demand fairer trade terms. What other trade deals has the Trump administration secured? The administration has renegotiated NAFTA (now USMCA), reached agreements with Japan and South Korea, and imposed tariffs on China during its broader trade overhaul. What is the proposed new tariff structure? Instead of the planned 30 per cent hike, the new deal imposes a 15 per cent across-the-board tariff on most EU imports. What are the key risks or criticisms? Critics argue the deal may strain diplomatic ties, shift costs to consumers, and provoke retaliation from other trading partners not offered similar terms.

U.S., E.U. reach an 'across the board' agreement on tariffs
U.S., E.U. reach an 'across the board' agreement on tariffs

The Hindu

timean hour ago

  • The Hindu

U.S., E.U. reach an 'across the board' agreement on tariffs

The United States and the European Union reached a tariff deal Sunday (July 27, 2025) after a brief meeting between President Donald Trump and European Commission chief Ursula von der Leyen. A White House deadline was days away for imposing punishing import taxes on the 27-member E.U., which is America's leading global trading partner. 'It was a very interesting negotiation. I think it's going to be great for both parties,' Mr. Trump said. The make-or-break talks were meant to head off trade penalties — and promised retaliation from Europe — that could have sent shock waves through economies around the globe. Mr. Trump and Ms. Von der Leyen held private talks at one of Mr. Trump's golf courses in Scotland, then emerged a short time later saying they had reached an 'across the board' agreement. In remarks before the session, Mr. Trump pledged to change what he characterised as 'a very one-sided transaction, very unfair to the United States.' 'I think the main sticking point is fairness,' he said while also noting, 'We've had a hard time with trade with Europe, a very hard time.' Ms. Von der Leyen had said the U.S. and E.U. combined have the world's largest trade volume, encompassing hundreds of millions of people and trillions of dollars. Trump said the stakes involved meant of making a deal, 'We should give it a shot.' Ms. Von der Leyen said Mr. Trump was 'known as a tough negotiator and dealmaker' which caused the president to interject with 'but fair." She said that, if they are successful, 'I think it would be the biggest deal each of us has ever struck.' For months, Mr. Trump has threatened most of the world with large tariffs in hopes of shrinking major U.S. trade deficits with many key trading partners. More recently, he had hinted that any deal with the EU would have to 'buy down' the currently scheduled tariff rate of 30%. The Republican president pointed to a recent U.S. agreement with Japan that set tariff rates for many goods at 15% and suggested the E.U. could agree to something similar. Asked if he would be willing to accept tariff rates lower than that, Mr. Trump said 'no.' As for the threat of retaliation from the Europeans, he said: 'They'll do what they have to do.' Their meeting came after Mr. Trump played golfed for the second straight day at his Turnberry course, this time with a group that included sons Eric and Donald Jr. The President's five-day visit to Scotland is built around golf and promoting properties bearing his name. A small group of demonstrators at the course waved American flags and raised a sign criticizing British Prime Minister Keir Starmer, who plans his own Turnberry meeting with Mr. Trump on Monday. Other voices could be heard cheering and chanting 'Trump! Trump!' as he played nearby. On Tuesday, Mr. Trump will be in Aberdeen, in northeastern Scotland, where his family has another golf course and is opening a third next month. The President and his sons plan to help cut the ribbon on the new course. Joining Ms. Von der Leyen were Maros Sefcovic, the E.U.'s chief trade negotiator; Björn Seibert, the head of Ms. Von der Leyen's Cabinet; Sabine Weyand, the commission's directorate-general for trade, and Tomas Baert, head of the trade and agriculture at the EU's delegation to the US. The deadline for the Mr. Trump administration to begin imposing tariffs has shifted in recent weeks but was now firm, the administration insisted. 'No extensions, no more grace periods. August 1, the tariffs are set, they'll go into place, Customs will start collecting the money and off we go," US Commerce Secretary Howard Lutnick told 'Fox News Sunday.' He added, however, that even after that 'people can still talk to President Trump. I mean, he's always willing to listen.' Without an agreement, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes. If Mr. Trump eventually made good on his threat of tariffs against Europe, it could meant that everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals would be more expensive in the United States. The U.S. and Britain, meanwhile, announced a trade framework in May and a larger agreement last month during the Group of Seven meeting in Canada. Mr. Trump says that deal is concluded and that he and Mr. Starmer will discuss other matters — though the White House has suggested it still needs some polishing.

US to release result of probe into chip imports in two weeks
US to release result of probe into chip imports in two weeks

Time of India

timean hour ago

  • Time of India

US to release result of probe into chip imports in two weeks

Academy Empower your mind, elevate your skills The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, Commerce Secretary Howard Lutnick said on Sunday, as President Donald Trump suggested higher tariffs were on the told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the "key reasons" the European Union sought to negotiate a broader trade agreement that would "resolve all things at one time."Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new said von der Leyen had avoided the pending chips tariffs "in a much better way."Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the United said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from August U.S. relies heavily on chips imported from Taiwan, something Democratic former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the United States.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store