US Sanctions Setback: Huawei's AI Chip Plans Lag 3 Generations Behind NVIDIA

According to a Bloomberg report, US sanctions have significantly hampered Huawei's ability to develop advanced AI chips, putting them three generations behind NVIDIA's technology. Restrictions imposed by the US government have prevented Taiwan Semiconductor Manufacturing Company (TSMC) from supplying Huawei with its most advanced chips and limited access to cutting-edge chip manufacturing equipment from ASML, a Dutch firm. This reliance on older technology limits Huawei to a 7-nanometer process node, a significant disadvantage compared to NVIDIA's use of TSMC's advanced 4nm and upcoming 2nm processes. Challenges for Chinese Chip Manufacturers The lack of access to ASML's Extreme Ultraviolet (EUV) lithography machines has forced Chinese manufacturers like Semiconductor Manufacturing International Corporation (SMIC) to rely on older Deep Ultraviolet (DUV) technology and multi-patterning techniques. This complex and less efficient process increases production time, cost…