The US Gets Nervous over China AI Chip Gains

A US Department of Commerce official cautioned that China is boosting investment in AI chip production and quickly closing the technological gap. While export controls have limited China’s access to advanced chipmaking equipment, the country is still moving forward.

The department estimates Huawei’s annual production of Ascend chips at around 200,000 units, far below domestic demand. Unable to import advanced deep and extreme ultraviolet lithography equipment, Huawei developed workarounds that substantially lower production yields. Jeffrey Kessler, US Under Secretary of Commerce for Industry and Security, told a congressional committee that China’s heavy investment in AI chip development means it is critical for the US not to have a false sense of security, to understand that China is catching up quickly.

Kessler added that US export controls would remain strong, but it is not planning any immediate new curbs on chips exported to China. White House AI leader David Sacks argued China’s AI models were only three-to-six months behind the US. Huawei founder and CEO Ren Zhengfei declared in an interview with People’s Daily that its Ascend AI chips are a generation behind rivals, but noted Chinese companies can use other techniques to yield results matching the most advanced global standards.

The US Department of Commerce canceled some existing export licenses for chip design software last month, as it conducted a review of strategic exports to China. Huawei claims it worked with partners to develop electronic design automation tools for 14nm chips.