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Huawei targets Middle East and Asia for AI chips despite 200K production cap
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Huawei Technologies is actively seeking customers in the Middle East and Southeast Asia for its AI chips, marking an ambitious attempt to challenge Nvidia’s dominance in international markets despite significant manufacturing constraints. The Chinese tech giant is targeting regions where governments have already committed to purchasing millions of Nvidia and AMD chips, positioning itself as an alternative supplier in the rapidly growing AI infrastructure market.

What you should know: Huawei has approached potential customers in the UAE, Saudi Arabia, and Thailand about purchasing its older-generation Ascend 910B processors.

  • The outreach represents Huawei’s strategy to establish a foothold in markets currently dominated by Nvidia Corp., the leading US chipmaker.
  • Both Gulf nations recently struck deals for well over a million Nvidia and Advanced Micro Devices Inc. chips over several years.
  • Thailand’s artificial intelligence efforts similarly rely on Nvidia hardware.

The big picture: Huawei’s export push comes as China’s strongest competitor to leading US chipmakers faces severe manufacturing limitations that constrain its ability to scale production.

  • A senior Trump administration official has said Huawei can only make 200,000 AI chips this year.
  • These chips are expected to be delivered mostly within China, leaving limited inventory for international expansion.

Why this matters: The move signals Huawei’s determination to compete globally in the AI chip market despite ongoing US sanctions and manufacturing challenges.

  • Success in these markets could help Huawei establish crucial international partnerships and reduce its dependence on the domestic Chinese market.
  • The timing coincides with massive AI infrastructure investments in the Middle East and Southeast Asia, creating potential opportunities for alternative suppliers.

Competitive landscape: Huawei’s entry into these markets represents a direct challenge to Nvidia’s near-monopoly in high-performance AI chips.

  • The company is positioning its older-generation Ascend 910B processors against Nvidia’s latest offerings.
  • Regional governments’ recent multi-billion dollar chip purchases demonstrate the scale of opportunity Huawei is targeting.
Huawei Seeks AI Chip Customers in Middle East, Southeast Asia

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