Huawei is making major changes to its production plans, showing great interest in the growing field of artificial intelligence (AI). The tech giant has decided to increase production of the Ascend 910B AI chip, but this means slowing down the production of the Mate 60 smartphone in at least one of its factories. This move is surprising because, as the South China Morning Post noted, the Mate 60 recently surpassed Apple in phone sales in China. Huawei’s decision to focus on AI chips rather than smartphones underscores the company’s belief in the significant impact AI will have on the tech world.

Demand for artificial intelligence chips is increasing in China

The Ascend 910B chip is important for AI model development and is in increasing demand in China. This surge in interest comes as Chinese AI developers are struggling to source high-quality AI chips like Nvidia’s H100 from abroad due to trade restrictions imposed by the United States. By focusing on the Ascend 910B, Huawei is not only finding a way to solve these problems, but also positioning itself as a major player in the local AI market.

Huawei’s new direction also shows how willing Chinese technology companies are to get involved in the field of artificial intelligence. Although they are slightly behind global leaders such as OpenAI and Google, companies such as Baidu continue to move forward with their own artificial intelligence projects. China is also ahead on AI regulations, which require companies to get approval before making AI products available to the public.

With the transition to artificial intelligence technology, Huawei is preparing for the future by focusing on an area that can fundamentally change technology. This move shows that Huawei is forward-thinking, ready to face current challenges, and confident in the long-term importance of artificial intelligence.