Huawei has revealed a faster development schedule for its forthcoming Ascend AI chip lineup, a move that places the firm among the longer-term rivals to Nvidia in the semiconductor market for artificial intelligence applications.
Nvidia's advanced graphics processors have seen sustained worldwide demand, particularly for artificial intelligence applications. Federal restrictions on the export of advanced technology bar the firm from supplying its highest-performance GPUs and related AI processors to buyers in China, a situation that has opened the door for Huawei, Nvidia's primary domestic competitor in that market.
The H20 processor was developed by Nvidia to meet the requirements set out under existing export regulations. The H20 represented a reduced-capability version of Nvidia's Blackwell processor, designed specifically for sale in China. Nvidia chief executive Jensen Huang disclosed in June 2025 that updated regulations on artificial intelligence chip exports would prohibit the transfer of even lower-tier H20 processors to buyers in China.
Nvidia recorded a revenue shortfall of $2.5 billion and absorbed an additional $4.5 billion write-down tied to H20 chip inventory that could not be delivered. Its Chinese operations now generate zero revenue. Huang argued that restricting access to American semiconductors would push the country toward greater investment in building its own artificial intelligence chip industry.
An analysis from one broadcast outlet found that Huawei's Ascend 950 chip series falls short of the performance levels delivered by Nvidia's Blackwell processors. The company has been taking steps to alter its position.
Speaking at an event in Shanghai, Huawei rotating chairman David Wang outlined plans to bring the company's chip launch timeline forward. The Ascend 960DT AI chip has been moved forward to a Q1 2027 launch, arriving nine months earlier than its previously planned Q4 2027 release date. The Ascend 960PR chip, a companion product previously scheduled for Q4 2027, has had its launch moved forward to Q3 2027, arriving a quarter ahead of the original timeline.
Wang also disclosed that the two subsequent Ascend chip generations — the 970 and 980 — are scheduled for launch in 2028 and 2029 respectively, with processing power projected to double between each iteration. The Ascend 960 chips are intended solely for distribution within China's domestic market, according to the company.
Eric Xu, one of Huawei's rotating chairmen, told reporters that domestic production capacity was insufficient to meet demand within China, leaving no plans for a broad expansion into overseas markets in the near term. Nvidia's absence from the Chinese market means Huawei's progress is unlikely to affect the American chipmaker's revenues in the short term, Xu indicated. Whether Huawei can expand manufacturing capacity and advance chip performance at a pace that outstrips Nvidia will determine how far the company advances over the long run.
