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Huawei just retasked a factory to prioritize AI over its bestselling phone

Feb 05, 2024 - theverge.com
Huawei is reportedly shifting its focus towards increasing the production of its AI chip, the Ascend 910B, at the expense of its Mate 60 phones in at least one facility. This decision comes as a response to growing domestic demand for Ascend chips, which are used in training AI models, and the low production in the plant. The move is seen as a strategic bet on the importance of AI to the company, despite the Mate 60's contribution to Huawei's phone sales surpassing Apple's in China in 2023.

The shift towards AI chip production is also driven by the difficulties Chinese AI companies face in sourcing highly sought-after AI chips like Nvidia’s H100, due to US restrictions on chip exports. This has led Chinese AI developers to turn to domestic alternatives like Huawei’s Ascend 910B chip. Despite efforts by Chinese companies to make their mark in the generative AI field, they are still slightly behind their US counterparts.

Key takeaways:

  • Huawei is planning to prioritize the production of its AI chip, the Ascend 910B, over its Mate 60 phones in at least one of its facilities.
  • The Ascend 910B chip is in high demand domestically as Chinese AI companies struggle to source highly sought-after AI chips like Nvidia’s H100 due to US restrictions on chip exports.
  • By focusing on the AI chip, Huawei aims to improve the number of usable and sellable chips from the facility.
  • Despite the success of the Mate 60 in beating Apple's phone sales in China in 2023, Huawei is making a strategic bet on the importance of AI to the company.
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