US Says Huawei's AI Chip Output to Stay Below 200,000 Units in 2025 Amid Export Curbs

China’s Huawei Technologies is expected to produce no more than 200,000 advanced artificial intelligence chips in 2025, according to a top U.S. export controls official.

Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, told lawmakers on Thursday that the projected output falls short of Huawei’s demand, but warned that China is rapidly closing the gap with U.S. capabilities.

The U.S. has imposed a series of export restrictions since 2019 to limit China’s access to high-end chips and manufacturing equipment, aiming to curb its technological and military advancements.

Credit: HUAWEI

Huawei plans to supply its Ascend 910C AI chips to domestic customers as an alternative to chips from U.S.-based Nvidia, the global market leader.

Kessler said most or all of the 200,000 chips expected in 2025 will be delivered within China.

He cautioned against underestimating China’s progress, noting that the country is investing heavily to boost both production capacity and chip performance.

White House AI adviser David Sacks said Tuesday that China is only three to six months behind the U.S. in AI model development. The White House later clarified that Chinese AI chips lag U.S. counterparts by one to two years.

Huawei CEO Ren Zhengfei told Chinese state media that the company’s chips are a generation behind U.S. competitors, but it invests more than USD 25 billion annually to improve performance.

While Nvidia’s chips remain more powerful, U.S. export controls on its most advanced products have reduced its market share in China.

The U.S. and China reached a tentative trade truce during talks in London this week, following earlier tensions over China’s restrictions on mineral exports.

The Trump administration responded by expanding export controls to include semiconductor design software, jet engines for Chinese aircraft, and other goods.

Democratic Representative Greg Meeks raised concerns that export controls were being conflated with broader trade issues.

Kessler said current export controls remain strong and that no new restrictions are planned immediately.

However, he emphasised that the Commerce Department will continue monitoring developments to ensure controls remain effective in a rapidly evolving landscape.

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• Huawei expected to produce under 200,000 AI chips in 2025

• Most chips to be delivered within China, says U.S. official

• China investing heavily to close AI chip technology gap

Source: REUTERS