Huawei Technologies uses advanced components from leading technology firms in some of its Ascend AI processors, according to research by TechInsights, Bloomberg reported.
This highlights China’s ongoing dependence on foreign hardware as it seeks to expand domestic semiconductor production.
TechInsights found components from Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics, and SK Hynix in Huawei’s Ascend 910C chips. The investigation revealed that TSMC produced the dies for the processors, while Samsung and SK Hynix supplied HBM2E memory chips.
The company has faced restrictions from the United States since 2019, when Washington added it to the Entity List. This move limited Huawei’s access to advanced technology as part of a broader effort to curb China’s semiconductor development. Since then, the US has extended export controls to AI accelerators, high-bandwidth memory, and the tools required for production.
Huawei’s Ascend 910C is seen as China’s most competitive alternative to Nvidia chips. The product entered mass shipment earlier this year. Foreign components, stockpiled before the latest restrictions, remain crucial for production.
Reports suggest that Huawei obtained millions of TSMC-produced dies through an intermediary, Sophgo. After TSMC discovered the resale, it severed ties with Sophgo and reported the incident to US authorities. Despite this, Huawei reportedly holds a reserve of around 2.9 million dies, enough to maintain production through 2025.
TSMC confirmed that it has not supplied Huawei since September 2020 and assured full compliance with export regulations. The firm noted that the chips analysed were made with dies examined as early as October 2024, rather than newer technology.
SK Hynix and Samsung also confirmed compliance with international regulations. SK Hynix stopped all transactions with Huawei in 2020, while Samsung stated it has no business ties with restricted entities.
While China’s Changxin Memory Technologies works on high-bandwidth memory, analysts expect shortages by the end of this year. SemiAnalysis reported that Huawei’s stockpiled HBM will deplete soon.