Yazılar

Huawei Targets AI Chip Sales in Middle East and Southeast Asia Amid U.S. Competition

/in /tarafından

Huawei Technologies is seeking to expand its AI chip footprint by attempting to export small quantities of its Ascend 910B AI chips to markets in the Middle East and Southeast Asia, according to a Bloomberg News report on Thursday. The Chinese telecommunications giant is reaching out to potential customers in the United Arab Emirates, Saudi Arabia, and Thailand as it aims to challenge the dominance of U.S. chip leader Nvidia in these regions.

Sources familiar with the matter told Bloomberg that Huawei is offering the older-generation Ascend 910B chips in the low thousands, although no deals have been finalized so far. Interest from parties in the UAE appears limited, while the status of discussions in Thailand remains unclear. Neither the Thai government nor Saudi Arabia’s media office responded to requests for comment, and Huawei did not immediately reply to Reuters’ inquiry.

In addition to the Ascend 910B, Huawei is promoting CloudMatrix 384, a China-based AI system powered by more advanced chips. However, due to supply constraints, the company is currently unable to export this system. The Middle East is becoming a hot market for AI chips, with several U.S. firms such as Nvidia announcing significant deals. Earlier this year, former U.S. President Donald Trump secured $600 billion in commitments for U.S. companies from Saudi Arabia during a regional tour.

Huawei is also focusing on selling its more advanced AI chip, the 910C, to Chinese customers who face restrictions accessing top-tier American chip technology. U.S. administrations have imposed export controls to limit China’s access to advanced semiconductor technologies, citing national security concerns related to military applications.

An Nvidia spokesperson noted that “With the current export controls, we are effectively out of the China datacenter market, which is now served only by competitors such as Huawei,” highlighting the competitive dynamics shaped by these restrictions.

Nvidia to Participate in China Supply-Chain Expo in July for First Time, CCTV Reports

/in /tarafından

U.S. chip giant Nvidia (NVDA.O) will attend the China International Supply Chain Expo in Beijing this July for the first time, according to Chinese state broadcaster CCTV.

The expo, now in its third edition, will take place from July 16 to 20 and feature more than 230 new Chinese and foreign participants, CCTV reported. Nvidia, the market leader in artificial intelligence-related chips, faces challenges in maintaining its share of the Chinese market amid tightening U.S. export controls restricting China’s access to advanced chips.

While the expo is not typically a venue for major deals, it offers foreign companies an important platform to demonstrate their commitment to the Chinese market. The event’s inaugural edition in 2023 saw Premier Li Qiang emphasize the reliability of Chinese supply chains, especially as some Western countries sought to reduce dependence on China.

Despite escalating trade tensions with the U.S., American companies will make up the largest group of foreign participants at this year’s expo, with a reported 15% increase over last year, according to CCTV.

Nvidia to Exclude China from Financial Forecasts Amid U.S. Export Restrictions

/in /tarafından

Nvidia will stop factoring in revenue and profit from the Chinese market in its financial forecasts, CEO Jensen Huang told CNN on Thursday, citing ongoing U.S. trade restrictions on chip sales to the region. The decision comes as the U.S. maintains stringent export controls that limit Nvidia’s ability to sell its advanced chips to Chinese customers.

When asked if the ongoing trade discussions between the U.S. and China could lead to a lifting of export controls, Huang said he was not counting on any changes:

“If it happens, then it will be a great bonus. I’ve told all of our investors and shareholders that, going forward, our forecasts will not include the China market.”

Huang reiterated his criticism of U.S. chip export curbs, arguing that they are not achieving their intended policy objectives. “The goals of the export controls are not being achieved,” he said. “The goals have to be well-articulated and tested over time.”

According to D.A. Davidson analyst Gil Luria, Nvidia may face downside risks for 2026 if it remains unable to resume sales to China. Nvidia’s China business remains significant: in the first quarter, China accounted for 12.5% of the company’s total revenue, generating $4.6 billion largely from customers stockpiling the H20 chip before the restrictions took full effect.

The company estimates the export curbs cost it $2.5 billion in lost sales in Q1, with an $8 billion revenue hit projected for Q2. Nvidia is still exploring limited options for the Chinese market but acknowledged:

“Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market.”

Michael Ashley Schulman, CIO at Running Point Capital, said Nvidia’s move to exclude China from its forecasts simplifies its financial outlook:

“By zero-basing China, Nvidia removes a volatile variable that neither Wall Street nor the Commerce Department can reliably handicap.”