Rising demand for artificial intelligence (AI) chips, coupled with production constraints, has forced Huawei to prioritize AI and slow down production of its premium Mate 60 smartphones, sources said. reports Reuters agency.
In this case, Huawei is forced to choose between Ascend AI chips and Kirin smartphone chips because the company uses the same facility to produce both. In addition, despite the company’s latest flagship Mate 60 being a huge success in China, the growing demand for AI chips guarantees huge profits for the company.
Demand for AI chips is fueled by US restrictions on the supply of American analogues to China. These restrictions have led Beijing to support local companies’ purchases of domestic AI chips, particularly the Ascend series from Huawei. According to Reuters, Huawei’s most competitive neural processor today is the Ascend 910B.
Huawei is trying to improve its factories so they can produce more chips. The company is assisted in this regard by the Chinese semiconductor giant SMIC.
Huawei declined to comment on this information.
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