Trump Administration Issues New Directive Against Huawei’s AI Chips Amid Ongoing Tensions with China

The strained relations between the U.S. and China show no signs of easing. In a new move, the Trump administration has issued a fresh directive concerning the Chinese tech giant, Huawei. According to the administration, any company using Huawei’s artificial intelligence (AI) chips worldwide could face criminal penalties for violating U.S. export control regulations. It is reported that Huawei’s chips, particularly the Ascend 910B, 910C, and 910D models, are built using American technology. On May 13, the Bureau of Industry and Security clarified that this new measure is part of the administration’s tougher stance on foreign AI chips.

However, it is important to note that the Bureau has not released a new rule but has instead broadened the interpretation of existing U.S. export controls.

Which Huawei Chips Are Being Targeted by the U.S.?

According to the Trump administration, Huawei’s Ascend chips—specifically the 910B, 910C, and 910D models—fall under new guidelines. The administration asserts that these chips are designed with certain American software or technologies, or they are manufactured with semiconductor production equipment that involves U.S.-origin software or technologies.

The punitive measures against the Chinese chip giant come at a time when Washington policymakers are stunned by Huawei’s speed in developing these chips and distributing advanced AI chip clusters to customers in China.

Threat to NVIDIA?

Huawei claims that its advanced AI chip cluster performs better than comparable products made by American rival NVIDIA. The Chinese system is composed of a large number of 910C chips. While these individual chips may not match the performance of NVIDIA chips on their own, Huawei asserts that the chip cluster as a whole provides superior performance.

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