Huawei Technologies Co is attempting to expand its artificial intelligence (AI) chip business beyond China, targeting prospective customers in the Middle East and Southeast Asia despite facing significant manufacturing constraints. According to individuals familiar with the matter, the Chinese technology giant has approached potential buyers in the United Arab Emirates, Saudi Arabia and Thailand to promote its Ascend 910B processors — a previous-generation chip — in limited volumes. These efforts reflect Huawei’s ambition to compete in AI hardware markets where US-based Nvidia Corporation currently holds a dominant position. Sources indicate that Huawei is offering shipments of the 910B chip in the low thousands, although the precise figures for each proposal remain unclear. In tandem, the company is seeking to attract interest by providing remote access to CloudMatrix 384, a China-based AI system built using the more advanced Ascend 910C chip. However, Huawei is not offering to export the 910C due to supply limitations and has instead prioritised Chinese clients who lack access to high-end US semiconductors. Despite these efforts, Huawei has yet to secure any firm deals. Its overtures are part of a broader strategy to increase international awareness of its AI capabilities while attempting to scale up domestic production. Nvidia, which has referred to Huawei as a formidable rival, continues to lead the global AI chip market by at least one generation, according to both US officials and Huawei’s own internal assessments. Among the potential clients, the Mohamed bin Zayed University of Artificial Intelligence in the UAE has reportedly shown no interest. The status of Huawei’s discussions in Thailand remains uncertain, while Malaysian negotiations over a proposed delivery of approximately 3,000 Ascend chips, previously reported by Bloomberg News, appear to be unresolved. In Saudi Arabia, however, conversations are understood to be at a more advanced stage, involving entities such as the Saudi Data & AI Authority (SDAIA). A spokesperson for SDAIA stated that the matter currently falls outside the organisation’s scope, and the Saudi government did not respond to requests for comment. Huawei’s AI chip output is severely constrained. A former Trump administration official noted that the firm is only capable of manufacturing approximately 200,000 AI chips this year, most of which will be distributed within China to meet domestic demand that exceeds one million units. This figure excludes a reserve of 2.9 million Ascend 910B dies previously sourced from Taiwan Semiconductor Manufacturing Co. The US government is closely monitoring AI infrastructure developments in regions including the Gulf and Southeast Asia, citing concerns about China’s expanding technological footprint. While many governments in these areas are seeking to maintain a neutral stance in the escalating US-China tech competition, Washington has exerted growing pressure. This includes encouraging AI projects to adopt US-made chips while discouraging the use of Huawei hardware. Despite a May policy shift under President Donald Trump to tighten controls, US officials remain divided on the national security implications of selling Nvidia and AMD chips to nations such as the UAE and Saudi Arabia. A draft rule from the Department of Commerce proposes extending licensing requirements to Malaysia and Thailand, though this has yet to be finalised and does not fully replace the earlier Biden-era framework. As of now, approvals for chip shipments tied to multi-billion-dollar AI deals announced during President Trump’s May visit to the Gulf remain pending. Exports of AI processors to Gulf states have required US government licences since 2023. Neither Nvidia nor AMD commented on the current situation, and the Department of Commerce declined to respond. Officials aligned with the Trump administration argue that swift action is needed to prevent Huawei from securing long-term customers, which could lead to larger-scale exports in the future. Others caution that expanding US chip exports may ultimately benefit Beijing and believe Washington’s leverage over Nvidia should be used to enforce stricter safeguards on overseas data infrastructure. In Saudi Arabia, where a state-backed AI investment fund has previously stated its willingness to divest from Chinese technology if requested by the US, the government has maintained long-standing AI collaborations with Huawei. It remains unclear, however, whether SDAIA will move forward with any deal involving the Ascend 910B or how Washington might respond. Earlier this year, the Department of Commerce declared that using Huawei’s Ascend chips anywhere globally could breach US trade controls, given the American technology embedded in their production. Following criticism from Beijing, the department revised this guidance, removing references to global applicability. Nonetheless, the current rules continue to warn that unauthorised use of the Ascend 910B, 910C or the forthcoming 910D model could trigger US penalties. Huawei declined to comment on this article, which is based on interviews with individuals close to the matter who requested anonymity due to the sensitivity of the discussions. The company previously stated that it had not shipped any Ascend chips to Malaysia, a claim echoed by the Malaysian government, which distanced itself from that project. -Bloomberg
