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US declares global use of Huawei AI chips a violation of its export laws
The guidance, issued by the US Department of Commerce's Bureau of Industry and Security (BIS), clarified that Huawei's Ascend processors, specifically the 910B, 910C, and 910D, are subject to strict export controls because they are believed to be designed or manufactured using US-origin technology.
The BIS stated, 'Using Huawei Ascend chips anywhere in the world violates US export controls.' The announcement serves as a public confirmation rather than a new regulation. It reinforces existing export laws that prohibit the use of US technology by blacklisted entities without proper licensing.
Why are Huawei's Ascend chips under scrutiny?
The BIS explained that the targeted Ascend chips are 'likely to have been designed with certain US software or technology or produced with semiconductor manufacturing equipment that is the direct product of certain US-origin software or technology, or both.'
The move follows growing US concerns over Huawei's rapid advancement in AI and semiconductor development. The Shenzhen-based company has started delivering AI chip clusters in China, built primarily with 910C chips. While each chip individually underperforms compared to Nvidia's leading models, Huawei claims its clusters surpass Nvidia's in overall compute and memory performance.
How are Chinese firms responding to the ban?
With access to US technology restricted, Chinese companies have turned to Huawei's Ascend processors as substitutes for Nvidia products. Demand is surging as Huawei ramps up local production capabilities and constructs its own advanced semiconductor manufacturing lines.
The Financial Times reported that the company's strategy of mass-scale clustering aims to circumvent individual chip performance gaps while asserting dominance in China's domestic AI infrastructure buildout.
What is the global impact of these export control measures?
The latest guidance expands the geographic scope of restrictions already in place since 2019, when the US government placed Huawei on its 'entity list', barring American firms from supplying the company without a license. These controls were later extended to foreign firms using US technology to make chips for Huawei.
Outside China, Huawei has lost ground in telecom contracts due to bans and restrictions by several countries, benefitting competitors such as Samsung, Ericsson, and Nokia.
Why has Huawei been a long-standing target for the US?
US distrust toward Huawei dates back nearly two decades, stemming from suspicions of espionage and intellectual property theft. While Huawei has consistently denied allegations, concerns have lingered due to the company's ties to China's military and the Communist Party.
Key past actions include:
> IP disputes: Cisco sued Huawei in 2003 for code copying; a 2017 US jury found Huawei guilty of stealing T-Mobile's tech.
> Sanctions violations: Huawei's CFO Meng Wanzhou was arrested in 2018 for allegedly evading Iran sanctions.
>Trade bans: Since 2012, the US has banned Huawei gear from federal networks, a stance expanded under the 2019 National Defense Authorization Act.
> Export controls: Trump's 2019 inclusion of Huawei in the entity list was followed by a global push to block its 5G role and chip access.
Can Huawei recover from the global restrictions?
However, despite severe disruptions, Huawei has shown resilience by increasing its smartphone market share in China and pivoting towards homegrown innovation.
The company's emphasis on domestic production and strategic expansion into AI clusters suggests a long-term bet on self-reliance, even as it remains largely shut out of Western markets.
Still, the 2025 restrictions further isolate Huawei's cutting-edge technologies from global integration, especially in AI, where compute-heavy infrastructure is vital.
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