A senior U.S. official said Huawei Technologies, China’s leading chip developer, has limited capacity to produce artificial intelligence chips this year, suggesting that U.S. restrictions on the export of chip manufacturing equipment to China are proving effective. U.S. Commerce Under Secretary Jeffrey Kessler said at a congressional hearing that Huawei won’t be able to manufacture more than 200,000 Ascend AI chips in 2025. Huawei’s AI chip output is far from sufficient, given China’s booming domestic demand. In 2024, Nvidia sold over 1 million H20 chips to China, according to SemiAnalysis. “We shouldn’t take too much comfort in the fact that China’s production of these advanced chips is relatively small, because we know they have global ambitions,” Kessler said. Huawei’s Ascend chips are gaining market share in China, especially after U.S. export controls banned Nvidia from selling advanced AI chips to China. But Huawei’s ability to supply AI chips is limited by U.S. restrictions on key chip manufacturing equipment. Those restrictions affect Huawei as well as its Chinese chip manufacturing partner, Semiconductor Manufacturing International Company. https://www.reuters.com/w.. #🇨🇳 ChinA.I. 🤖🧠🦾🤖