Huawei's AI Chip Strategy Tests US Tech Dominance Abroad

Huawei’s limited AI chip exports reflect China’s strategic response to years of US trade restrictions, especially since Huawei’s 2019 addition to the US Entity List.

The sanctions have forced Huawei to develop alternative supply chains and technologies, fostering a bifurcated chip strategy. Huawei now reserves its more advanced Ascend 910C chips for domestic Chinese firms lacking access to top-tier US components, while offering the older 910B models to international markets. This approach mirrors China’s broader push for semiconductor self-sufficiency, despite facing major technological and manufacturing hurdles.

Key Highlights

• Huawei exports 910B AI chips while reserving 910C for domestic use.
• UAE and Saudi Arabia targeted as new AI chip markets.
• US policy now focuses on managing China’s global tech influence.

The company’s recent outreach to the UAE and Saudi Arabia underlines China’s ambition to expand its AI chip footprint globally—especially in emerging tech hubs where US firms like Nvidia and AMD have already secured major deals. The UAE and Saudi Arabia have reportedly committed to purchasing over a million chips from American companies, showing strong preference for US technology.

Still, Saudi Arabia appears more receptive to Huawei’s proposals than the UAE, potentially creating divergent spheres of technological influence in the Gulf. This development underscores a US policy shift from simple denial of access to actively managing global tech competition, particularly in AI infrastructure.

Also Read: What's on the Line as the US Grants Saudis Access to Advanced AI Chips

Huawei’s actions serve as a microcosm of China’s evolving global tech strategy, testing the limits of American dominance and highlighting how geopolitical competition is now playing out in emerging AI markets across the Middle East and beyond.