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Investing.com -- China’s Huawei Technologies will be able to produce no more than 200,000 advanced artificial intelligence chips in 2025, according to a top U.S. export controls official who spoke to lawmakers on Thursday.
Jeffrey Kessler, Under Secretary of Commerce for Industry and Security at the Commerce Department, told a congressional hearing that the production capacity for Huawei’s Ascend chips remains below the company’s demand. He projected that "most or all" of these chips will be delivered to companies within China.
Despite this limited production capacity, Kessler warned against complacency. "China is investing huge amounts to increase its AI chip production, as well as the capabilities of the chips that it produces. So, it’s critical for us not to have a false sense of security, to understand that China is catching up quickly," he told the House of Representatives Foreign Affairs South and Central Asia subcommittee.
Since 2019, the U.S. has implemented export controls aimed at limiting Chinese firms’ access to high-end U.S. chips and equipment needed to produce them. These restrictions have become a point of tension in U.S.-China relations.
In response to these limitations, Huawei has been developing its Ascend 910C AI chips as an alternative to those made by NVIDIA (NASDAQ:NVDA), which currently leads the global market.
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