Recent US export restrictions on Nvidia H20 chips to China may significantly strengthen Huawei's position in the artificial intelligence industry. The H20 chip, designed for the Chinese market with previous sanctions in mind and featuring reduced performance compared to top-tier Nvidia models, can now only be exported after obtaining a special license. This puts Nvidia's revenue of up to $5.5 billion at risk and creates uncertainty for Chinese customers such as ByteDance and Tencent.
Huawei is actively promoting its own Ascend 910C processor, which is already being tested in leading technology firms in China. According to analysts, the Ascend 910C provides about 60% of the performance of Nvidia's top-tier H100 chip in AI tasks.
Singapore-based expert Nori Chiu noted: "US sanctions inadvertently encourage Chinese companies to switch to domestic technologies, accelerating the development of Huawei chips." Restrictions on H20 may not only strengthen Huawei's position in China but also contribute to reducing the country's dependence on foreign suppliers.